The Dow is about to hit 14,000

[BarbaraGordon]

Originally Posted by Detroitdad

Take a big fat surplus and turn it into a big fat deficit (admittedly with some help, but the bulk of that deficit is due to tax cuts) knowing that the future obligations (entitlements) are about to grow exponentially in the next few decades and that they will either not be met, drastically reduced, or kept only with large increases in taxation,and I think you have done a big, fat disservice to the country.

So, you'll have to excuse me if I don't get excited about an artificially high, arbitrary number on Wall Street, in the face of a housing recession. I don't put a whole lot of faith in the wisdom of the herd in investing after just a casual look at the Internet bubble and the real estate bubble.

I'm not so much rah rah economy either.

The latest employment growth has been in the service sector. White collar job supply has declined. This quarter saw an increase in new applications for unemployment.

Since 2000, bottom 60% of households have seen a decreased share of the wealth.

Home foreclosure rates are at a fifty-year high.

The federal budget? Axed scientific research in favor of the war. Grant funding the lowest in decades. That can't be good for the long-term economy.

[Requiem]

Originally Posted by BarbaraGordon

I'm not so much rah rah economy either.

The latest employment growth has been in the service sector. White collar job supply has declined. This quarter saw an increase in new applications for unemployment.

Since 2000, bottom 60% of households have seen a decreased share of the wealth.

Home foreclosure rates are at a fifty-year high.

The federal budget? Axed scientific research in favor of the war. Grant funding the lowest in decades. That can't be good for the long-term economy.

There's even more bad news on the horizon. New car sales are down 27% year over year, GM has quietly laid off entire shifts in several MI plants and we are seeing only the tip of the sub-prime mortgage crisis. Most economists see a bleak second quarter 2008 and beyond. We are a domestic terror attack away from recession.

[ChinoCoug]

Originally Posted by Archaea

The debt concerns me but the Democratic response of increasing income taxes on "wealthy" sends me into a deep, dark depression. Might as well cease earning if that's the only solution.

like how Clinton's tax hikes on the wealthy sent the economy down a depression.

[Detroitdad]

I never said anything abut Clinton...but since you mention it...I agree with all who have stated here that President's get too much credit and to much blame for the overall economy. But, one thing that they can control is the growth of discretionary spending, and in this regard Clinton's record is better than that of Bush.

The economy has been decent under Bush, and partly because of the tax cuts, but without spending restraint and adding a massive new entitlement (prescription drug benefit) the economic gains came at a huge cost to the future fiscal shape of this country. That is my problem with the Bush economic policies.

Also, one has to ask oneself whether super low inflation and record low interest rates are actually good in the long term for the economy in light of two enormous bubbles in the last 10 years. I don't think the evidence is clear yet whether it is. It may very well be, but the housing market will have shake out first for the answer to become clear.

[jay santos]

I'm pretty simple minded about this stuff.

If Crowton has three losing seasons in a row, it's his fault.

If Clinton has eight years in office and leaves with a budget surplus, he did a good job fiscally.

If Bush has eight years in office and leaves with a terrible budget deficit, he didn't do a good job.

[Archaea]

Originally Posted by ChinoCoug

like how Clinton's tax hikes on the wealthy sent the economy down a depression.

They did, once the tech bubble burst. We had some very severe times due to the phony tech bubble.

[ChinoCoug]

Originally Posted by Archaea

They did, once the tech bubble burst. We had some very severe times due to the phony tech bubble.

I'd like to see you link the tech bubble with the tax hikes on the rich. Find a causal story if you can.

Bubble was caused excessive deregulation b/c Clinton wanted to establish good relations with Wall St.