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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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Comments (3)

Hooverville! Soup lines! </... (Below threshold)

Hooverville! Soup lines!

We have insurance on our sh... (Below threshold)

We have insurance on our shiny new cars, but not our shiny children.

According to BusinessWeek t... (Below threshold)

According to BusinessWeek there are 310,000 households in China worth at least $1mln net value.
China`s economy is thriving. What if their authorities replace their currency reserves in dollars with euro ?






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