A Loos Blog

The DOW jumped over 9,000 and stayed there for two days!  This is due news that homes sales rose in June for the 3^rd straight month, and earnings reports from some major corporations were higher than expected. 

But, I wonder why Wall Street Investors can be so positive when:

• The rise in home sales is due to buyers flocking to buy low cost distressed properties.
• The White House is pushing health care reform that promises sweeping changes to the entire system, even though 75% of polled population are happy with their health care.
• The Federal Bailout is around $750 billion and counting, or roughly $5,000 per every working person in the United States. 
• The Federal Deficit is pushing $2 trillion, or roughly $13,000 per every working person in the United States. 
• Unemployment is 9.5%, higher than previous month by the loss of 219,000 jobs. 

So why the smiling faces on Wall Street?  It’s the economy!  Investors love good news, and sometimes bad news has a silver lining. 

• The low prices caused by all those foreclosed properties mean first time buyers who could never afford a house are now moving in to their first home. 
• The proposed changes to health care may never be realized, but the pressure to overhaul the system may bring many bad practices to light. 
• The Federal Bailout and Federal Deficit combined are still smaller than the US production capacity, so these can be overcome by a strong US economy.   
• Ford Motor Company posted a profit amid all the news about the death of the US Auto Industry.
• A rising DOW indicates investment in industry, and that means jobs. 

Smile, its contagious!