US Stock Indexes (DOW Nasdaq SnP 500)

Monday, November 9, 2009

Unemployment on the rise - and so is the stock market?

As we all have heard, the unemployment rate has jumped over 10% in October and is predicted to jump to 11% by the end of the year. The biggest mystery is, why are stocks doing so well?

In October 203,000 people where layed off so can we assume that is 203,000 more people receiving Welfare benefits? If you watch the stocks you will notice they they seem to do well at the beginning of the month and than drop as the month moves on. A few stocks that seem to being doing quite well are the utility companies, of course, who wants to be without electric or telephones, so this makes sense.

If more people are receiving public assistant benefits could this be partly the cause of the stocks going up? The way public assistance works in most states is that the person receives a payment in the beginning of the month, usually the first nine days of the month. The largest during the beginning because Foodstamps are included. The people who receive a full benefit may recieve a second payment at the middle of the month. So would this mean that although more people are jobless they are using these benefits to pay their bills, at the bigging of the month, showing a rise in stocks?

Can this type of system be healthy for our economy? Of course we know that it will probably raise our taxes higher, so when will things get better?   For now the public assistence system may help, but for how long?  When will everything come to a horrible crashing hault?  Could this be the fall of our goverment?  It is said that no government has been able to last more then 200-years, so what makes us think ours is any different?  Are we finally seeing the end of our democracy and could this be the great 2012 apocalypse that we have been wondering about?

We must not forget when the next Presidential election is -- 2012
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Posted by Beth at Monday, November 09, 2009
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