Business News Update

It Was Twenty Years Ago Today

October 19, 1987.

Reagan was president. Gorby was making nice-nice. Buchanan was frothing at the mouth. The Kos/Colbert Kidz had yet to be toilet trained. Democrats on Capitol Hill were acting out like nutcases. Even moreso than usual.

We also witnessed the greatest investment buying opportunity of a lifetime.

The Dow Jones Industrial Average plunged 22 percent.

In one day.

There was panic. Chaos. Liberals in the media reacted like two-year-olds on crank. Moreso than usual.

Within a few years, however, the Dow not only recouped its entire “Black Monday” loss it had doubled in value. Soon thereafter it doubled again. Then again.

Morals of the story:

Buy low.
Sell high.
Not vice-versa.

Money, Money, Money

Despite loud warnings to the contrary from liberal academia and the media — especially during 2004 {hint, hint} — the falling dollar hasn’t resulted in a flight away from U.S. securities and skyrocketing interest rates. Not at all. In point of fact:

Corporate foreign investment into the United States rose 74 percent to $175.4 billion in 2006, almost double the worldwide growth rate of 38 percent. Britain received $139.5 billion and France received $81.1 billion.

Furthermore the cheap greenback has invigorated our export sector, kept a lid on our trade shortfall, and helped continue net gains in GDP.

Morals of the story:

– Global economics is not a zero-sum game.
– Liberal academia’s opinions are as useful as decorum and etiquette at a vomit party.
– The liberal media is as prescient about finance as Anne Boleyn was about her relationships.

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Joe Torre is Out