The Democrats have won both houses of next congress and the economy- or at least the stock market- is doing pretty well. There's lot of money and lots of ambitions going around. On the economic front, the catch phrase is "goldilocks", suggesting that the conditions are just ripe for both growth and low inflation, hence low interest rates. The proponent of this theory claim that with productivity high, growth will continue, and the stocks will march on higher and higher, and this will overcome low employment rate, which tends to push pressure on wages on the upside and stoke inflation.
On the political front, the buzz is "deadlocks", a term used to suggest that with congress in Democrats hands and the Whitehouse in Repulicans hands, there will be so much back and forth going on that very little in terms of regulations and legislations, the stuff these folks are supposed to do on people's behalf, will get accomplished. This, in turn, is good for the stock markets, as fewer intervention by the regulators, the more hedge fund managers could fool around with your money, or whoever's money it is. Hence, good for the goldilocks.
Saturday, December 16, 2006
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