The Dow Jones Industrial Average rose above 13,000 points Tuesday, the first time it has done so since the 2008 financial crisis.
Early trading pushed the Dow Jones into territory not seen in nearly four years. The index last traded above 13,000 points on May 20, 2008.
The average’s morning bump comes in the context of a Greek bailout deal – a $172 billion rescue plan, according to Reuters.
The DJIA opened at 12,949.34 on Tuesday, crossed the 13,000 line, dropped down slightly below that mark shortly after.
The DJIA is a stock market index that consists of 30 important American companies.
The positive economic news comes in the context of other developments: the decline in the unemployment rate to 8.3 percent, fairly strong job creation over the last few months, and Congress’ passage of a payroll tax holiday extension.
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4 Responses
This has absolutely nothing to do with anything. The stock market is like a casino where the Federal Reserve places tons of printed money that have no value except to maintain the mirage of a healthy stock market. If not for Fed intervention the market would probably be at around 6-7,000.
There is no investment in business expansion and employment at all. This is comparable to the Depression of the 1930s.
Having the Federal Reserve Bank (not to mention the European Central Bank and the Bank of England) engaging in massive “printing” of money is the major factor. The money has to go somewhere, and it comes to American securities- which are a heck of a lot safer than European securities.
Sooner or later this will blow up in our faces, but for the meanwhile, American securities will do reasonably well.
Quick, Nice Jew and Akuperma…drop whatever you are doing and call the Wall Street Journal…NOW…they have it all wrong…and they need your intelligent insights…
The Journal says “…the milestone is just the latest step in a rally that has brought the index up 22% since early October amid encouraging U.S. economic data, and stocks are a bargain relative to corporate profits…it signals resurgent market faith from investors…”
How could they be so stupid? They must be liberals or something!
#3- The Journal, like most Americans, has a very short frame of reference. That’s why they (the Journal, most Americans) missed the 2007 crash which was building up over several years due to dubious loans. Americans tend to focus on what will happen next quarter, and no more.