Friday, June 29, 2012

Dow Soars, Day After Obamacare Ruling!

Image from
Hmmm. . .is that headline a little out of context? Is anything else going on today that would make the Dow go up? Yes, there's an EU decision. But you know what? It doesn't really matter. All economic diviners and prognosticators are guessing nearly all  the time.

On Thursday, after the SCOTUS decision on Obamacare, several economic indicators plunged precipitously. Right-wing World--rocked to its core by the decision to uphold the ACA--seized upon that fact, and put up charts and graphs showing the plunge. They were upset, dammit, but they could say, "See! I told you so!" Yeah, not so much. Forget that the Dow can go up or down in 200-point swings on any given day for any--or no--reason. Forget that on Thursday, it only ended up 20-some-odd points down. Forget that when it goes down during good news, business reporters will say it "dropped, despite" the good news. Forget that when something good happens and it goes up, they use imprecise language, like "stocks are up, amid news that. . ." It's all guess work, and they don't have to be right, like, ever.

So, however the twitchy Wall Street investors got after SCOTUS shook the world yesterday, they apparently got over it fast. Today--as I type this--we're up over 200 points, far exceeding yesterday's drop-off. And by the end of business, it could be over 200, under 100, or up 300. I don't know. You don't know. The CNBC and FOX "Business" channel don't know. But the last two will act like they do. Note the imprecise language below. They don't attribute the sharp stock rise to anything. It's "on the final trading day," "as a surprise agreement" happened, and it "overshadowed" the consumer sentiment report. All speculation.


Stocks Hold Sharp Gains on EU Deal; RIM Skids

Stocks held sharp gains across the board on the final trading day of the second quarter as a surprise agreement by EU leaders to help the region's struggling banks overshadowed a disappointing consumer sentiment report. . . .

Read more at: CNBC

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