I posted some statistics on the day of the Presidential Election. I noted seven things to watch for after the political hoopla had a chance to cool off. Here are some interesting updates to those comments I made on November 4th, 2008 (click here to read that post):
The first item in my post was about the $700 Billion bailout plan. My comment was to watch how the plan effected the stock market (see the next two bullet points) and how closely the spending has stuck to its original proposal. Result: The plan has been extended to include the car manufacturing industry and reports show the total bailout will cost us more than $3 TRILLION (that’s $3,000 BILLION). Also, newly elected President Obama is talking about a stimulus package of $825 BILLION. Keep trying, one of these bailouts is bound to work (sarcasm).
PS – The bailout creator Henry Paulson will not remain the Treasury Secretary. Great accomplishment in your final six months Hank! Glad you could leave your mark on American history.
The second item highlighted the crazy stock market swings during the six weeks prior to the election. The DOW fluctuated more than 500 points on five occasions in that time frame, but only twice since the election. If you look at 300+ point swings then compare 14 occasions from 9/29/08-11/4/08 to 12 from 11/5/08-1/16/09. A tad bit less volatile, but still not good (I was hoping it would calm down after the election).
The DOW closed at 9,625 on 11/4/08 and has gone down another 1,000+ points to close at 8,281 just before the inauguration. That bailout plan really worked well!
The Fed dropped the interest rate to 1% back in November. Guess what, they lowered it to .25% and might take it down a bit lower. You know, to stimulate the economy.
Compare interest rates that were offered on 11/4/08 to today:
15yr mortgage: 6.04% compared to 5.12% today (30 year was 6.41% compared to 5.42%).
6-month CD was 3.03% compared to 1.93% today (Money-market was 3.00%, is now 1.83%).
Phone calls to my “no-call list” home have dropped substantially. Yay!
The proposed bill H.R. 7223 is stagnant. Why remove regulations that choke publicly traded companies when you can just keep introducing stimulus packages and bailouts? (Again, sarcasm).
I hope you found this comparison interesting. I welcome any insights or comments. Let’s talk!