Tuesday, September 25, 2012

With Mid-Term Elections Looming, Will Democrats Fire Back with a Second Stimulus

Data revealed last week showed a job market that's careening down a steep street with no breaks. Yet investors shrugged off concerns and t stock market actually ended the week up 1.5% due to that rockin' Monday on the first day of the month.

That's because there is growing speculation that the Democrats are plotting a surprise stimulus in the run up to November's mid-term elections.
Let me explain...

Stocks fell with all the forcefulness of cotton balls tumbling onto kitten fur on Thursday and Friday as investors shrugged off dire news regarding unemployment. While the unemployment rate was flat with the prior month, the main lesson from the report was that people are withdrawing from the labor force at an alarming rate.

It would make sense that stocks would feel grumpy about this state of affairs because it suggests that U.S. economic growth is sputtering. But Mr. Market has a twisted way of looking at the world, as you might have guessed by now.

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