It's a Crazy World
Nov 12, 2009
What a crazy world this is.
Today the stock market is down, and it is attributed to the fact that people are using less energy. So the government tells us to conserve energy, and when we do, the stock market sees this as bad news. Big Oil companies aren't selling as much oil, and they are listed on the Dow. So we should buy more oil and turn up the heat in our houses this winter.
Likewise, when Americans go into debt, the stock markets are up, and when Americans start saving their money (like they do in other countries), the markets go down. When Americans slow down their spending spree, the consumers win, but the corporations go broke. So we should pray, "Give us our debts, as we forgive those banks that foreclose upon us."
When the dollar declines in value, the markets are ecstatic. So let's increase our imports from China and drive the value of the dollar down further. That should bring the Dow back up past 14,000. More inexpensive goods at the store is all we really need to stay prosperous.
What does this tell us? For one thing, if you are looking at the Dow as your barometer of the economy, you have to look at it in reverse. When people save money, save energy, and the dollar strengthens, the Dow goes DOWN. So if we want to put the bull back into the stock market, you now know what to do.
Unless, of course, you think there's already too much bull on Wall Street.
It's a crazy world.
Dr. Stephen Jones