Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Whatodo
Because when peoples' stock portfolios go up, they feel richer and spend more, which creates more jobs. It worked great in the late 90's until the stock market bubble collapsed. It seems like that cycle is beginning to repeat itself.

These sort of boom/bust cycles transcend whoever happens to be in office at the moment.
22 posted on 01/09/2004 3:19:21 PM PST by ambrose
[ Post Reply | Private Reply | To 15 | View Replies ]


To: ambrose
...It worked great in the late 90's until the stock market bubble collapsed. It seems like that cycle is beginning to repeat itself.
With all due respect, I question this.

-The 90's was, after all, only about 10 years ago and the memory of most investors is not quite that short term-- esp. after getting a financial hosing.

-There are new, younger investors today who were maybe little more than teenagers in the 90's. While these new investors did not actually experience the bubble/burst they do know of it; perhaps even through the stock market troubles of their immediate family.

- The situations -- politically, world, national, social, in business, et. al. is not what it was ten years ago. This too will effect investors.

-And last but not least is that fact that (we) boomers are 10 years closer to retirement than in the 90's. That alone is a mighty darn factor.

...Because when peoples' stock portfolios go up, they feel richer and spend more, which creates more jobs.
Actually, more people "feel richer and spend more" not b/c of their stock porfolio but because of the new-thanks-to-low-interest-rates equity in their houses. They can refinance, pay less every month, and the the "left over" money go out and buy/invest in things.

47 posted on 01/09/2004 3:46:46 PM PST by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
[ Post Reply | Private Reply | To 22 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson