Is the economy really improving? S&P reflects higher than 02-03

Discussion in 'Economics' started by noob_trad3r, Nov 4, 2010.

  1. The markets seem to indicate that our economy is much better than expected.

    The S&P is much higher than in 2003 Is our economy better than what it was in 2003?
  2. Tsing Tao

    Tsing Tao

    of course not. but there wasn't 2.5 or so trillion dollars of fed money, almost 700b of tarp money, and God knows what else sloshing around in the system back then, was there?
  3. You have to look at all the factors. Median income in 2003 was $45k. Today its about the same. much did things cost in 2003 vs. today? Well...Gold was $1,000 CHEAPER this time in thats quite a bit of inflation. Gasoline prices in 2003 were about $1.59, so those are up double. Electricity, cable bills, ect. were all cheaper in 2003. So we have the same income,but most prices are twice as much. Seems we are not doing as good as 2003.
  4. Makes sense. But it does not seem sustainable. In the 1970s inflation pummeled the markets. Won't we end up seeing that effect.

    At some point people will not be able to spend or borrow.
  5. The stock market not necessarily reflects the economy.
    Google: bubble.
  6. but CNBC is saying that obama is going fwd. w/ the all class tax cut, as such, it should move the market higher between now and the end of the year
  7. Bob111


    tax cut? no more 10%, lowest bracket starts from 15% in 2011..that's 50% INCREASE,not cut.