Re: May 7th: Dow Jones Up 828 pts Since April 11th, 2007 close....Time Bomb?
Oil prices have more than doubled since 2004 going form $30 per/b to $60 per/b.
Foreclosure rates in many parts of the U.S. are up large percentages compared to a few years ago.
At the same time globlization have slashed corporate costs and technology has allowed workers to become more productive.
But consumer debt is growing (Master Card profits alone were up 70% last qrt) and at the end of the day how can profits be maintained if the credit runs dry?
828 points, 26 days. Where's the white out?
take your pick, UTD.
reasonably strong first quarter earnings reports, perception of a Goldilocks economy, recent flurry of M & A news (including a proposal for Dow Jones itself), ppl cashing out of real estate fearing the slowing housing market and investing it into the stock market, dems vs. bush policy deadlock easing chances of new law stress on businesses, rumors of feds lowering rates..
nothing easier than finding reasons for stock market behavior once its happened. :D
and i dont think mastercard makes money out of consumer debt, that would be the card's issuing bank.