Saturday, March 7, 2009

Can Dow 3500 be Far Away

As share prices continue to nose dive the Dow Jones Industrial Average continues to follow a very similar pattern as the one seen in the early years of the Great Depression. If the pattern continues the Dow will fall another 50-60% from the current closing price average of the last few trading weeks, which would mean we will see a closing Dow Average of around 3500 before we can begin to regain the financial footing of the stock market if that is even possible. At Dow 3500 most individual investors will have lost over 70% of the value of their assets that they entrusted to the stock market. It will be decades before Wall Street can convince the average worker to invest in stocks, bonds, and mutual funds again.

This incredible fall of the Dow Jones Industrial Average points out the flaws in the Republican Idea of Privatizing Social Security. Americas should be thanking every Democrat who stood in the way of the Republican Bush Plan that would have invested Social Security funds in the Stock Market. One can only begin to imagine the devastation to the Nation's Aged and disabled had this plan been forced through with the rhetorical lies of the Bush Administration. Let us not forget that Senator John McCain who now stands up on the Senate Floor and criticizes the Stimulus Bill and rescue efforts of the Obama Administration was a major proponent of Privatizing Social Security, along with Republican John Boehner, and Republican Senator Lindsy Graham.

Republicans call all efforts of the Obama Administration to correct the damage done by the failed Republican Philosophies of the Bush Years as "Generational Thievery", remarks that ring hallow not only because the Bush Administration grew the Federal Deficit larger than any other Administration, but because all of these men supported putting Social Security Money into Stocks and Bonds. Although they fail to admit that their support of deregulation and tax cuts for the wealthy are major contributing factors to the current situation, history will not fail to report it.

When the Dow is at 3500 at the bottom of this cycle created by the failed Republican view of economics they should be constantly questioned as to where they think the Social Security payments were going to come from if their plan to privatize had gone through the Congress.
Add to Google

No comments: