Kyle and her husband moved to Brookfield in 1986. She became active in local politics and started blogging in 2004. Her focus is primarily on local issues but often includes state and national topics, too. Kyle looks at things from the taxpayers' perspective in a creative, yet down to earth way, addressing them from a practical point of view.
You know how that expression, put your money where your mouth is, means that if you believe in something, you are willing to invest in it?
Well, the stock market is one place people put their money if they believe a company will do well. It's an indicator of investor confidence. The market as a whole has been steadily going down since it appeared Obama would win the presidency and bailout fever hit. (UPDATE: Fairly Conservative has a great post today about this very subject, including a chart. Do look at the drop in October. It coincides with the TARP bailout.)
Today Obama signed his porcine "stimulus" bill--the one that is estimated to really cost Americans 3.27$Trillion when all is said and done--the one that economists and think-tanks lose sleep over.
Is the market responding with glee? Hardly. The Dow lost nearly 300 points today and closed at 7,552.
I recently met with my banker to discuss our IRAs. Just looking at the ever shrinking size of our meager attempt to prepare for retirement was depressing enough. Inflation will swallow up what is left. Discussing what next steps should be taken was more discouraging.
Knowing we are facing increasing taxes, I won't have much to invest in future IRAs. But even if I did have a surplus of cash, what would I put it in?
Socks? Stocks? Bonds? CDs? Annuities? All of these investments require confidence in our future economy. I have none.
Just as an experiment, wouldn't it be great if President Obama announced he was cutting business taxes and reducing the Federal income tax rate on individuals? I bet that the market would respond favorably...immediately.
Why? Because investors know what works!
From The Heritage Foundation: An Open Letter to the Congress and the President of the United States, Friday the Thirteenth