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| Bob's Economic and Stock Market Commentary: October 16, 2006 |
| The Economy Is Doing Great, Isn't It? |
In anticipation of the midterm elections, the Bush administration and its compliant media cohorts are talking about the dramatic improvement in our economy.
- Gas prices are declining.
- The annual budget deficit has been cut in half.
- The Dow Jones Industrial Average just reached an all time high!!
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| While these things are true, it's sort of like saying you are being nicer to your cat because you aren't kicking it as often. I hate to be fussy, but let me put their boasts into context by comparing these three statistics to when George W. Bush became president on January 20, 2001. |
| GAS PRICES PLUMMET |
| Gasoline prices rose to an all time high during the Bush II administration. There's nothing like $3+ gas to make you appreciate gas at $2.50 a gallon. By the way, gas prices when Bush took office were $1.50 per gallon. |
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| FEDERAL BUDGET DEFICIT SLASHED. |
| This year's federal budget deficit is projected to be a mere $248 billion. The 2004 Bush deficit was $413. This is certainly a decrease, but it should be noted that Bush's predecessor, Bill Clinton, that free-spending liberal, had federal surpluses during each of his last four years as president. |
| On January 20, 2001, the total debt accumulated by all 42 presidents during the previous 212 years was $5.7 trillion. In less than six years, the Bush II's administration has added an additional $2.8 to our country's debt. Each American now owes about $28,000. |
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| DOW SKYROCKETS |
| But none of that matters as long as the stock market is doing well. Right? |
| It is true that the Dow Jones Index has never been higher, but this index of 30 of the largest American stocks rose just 13% during Bush's six years in office. During Clinton's eight years in office the Dow rose an astonishing 226%. |
| If nothing else, you have to give the Bush administration credit for their ability to put a good light on drab numbers. |
| Opinions expressed in my newsletters and this website do not necessarily reflect the views of any other organization mentioned. |
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