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6
4
Yes No
Debate Score:10
Arguments:6
Total Votes:10
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 Yes (3)
 
 No (3)

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Two Consecutive Weeks of Stock Market Gains

For the first time since May 2008, there have been two consecutive weeks of positive movement in the stock market.  Does this signify the end of the economic recession and the turnaround of the economy?  Is the worst over?  Or are we still in store for more falling prices?

But, the most important question: Is it time to buy? ;)

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Yes

Side Score: 6
VS.

No

Side Score: 4

Yes, if you can afford it, It's time to buy.

1. Prices are down. There are some good deals out there.

2. Spend it while it still has value. The more money the government prints, the less it's going to be worth when people realize that it is only a piece of paper you can hardly crumple or fold and wipe with. ;)

Side: yes
2 points

That Krugman guy says it's a bottoming out. Not that it's necessarily turned the corner yet, but that we've seen the worst of it.

But who knows how long the worst of it will last. I don't know, stocks are kind of lame, because concievably if every person decided to invest at once, it would look great, but if the money invested is squandered by the company (AIG) and if the people putting in all this money didn't really have the money (bogus bank loans, people buying houses they can't afford) then it's just another bubble.

I think a much more accurate measure of a nations economy are mediun income, unemployment rate, and cost of living. Take care of those things, and the stockmarket will take care of itself... as long as it has oversite.

And someone brought up an interesting point. In spite of this mess, some people are still crying about oversite. But everything has oversite. Roads have oversite, with traffic lights, and the people who fix them need to be licensed, etc. Now what would happen if we decided government should butt out of that?

Side: yes
1 point

It's a good thing, but I agree that we should be cautious. I'm not very knowledgeable in business, but I don't know if this upward trend will continue or is just a fluke. We should continue saving and spending the way we have been recently until the economy is fully recovered.

Side: Be careful we are not stable yet

You ask a few questions in which the answers could be no or yes for either but I believe you threw out that last one for a bonus point. 2 weeks of gains is just that. If you look history and more specifically at the economics within history you'll see that it's cyclical. http://books.google.com/books?hl=en&lr;=&id;=fBgnu8q-Cs0C&oi;=fnd&pg;=PR21&dq;=history+of+US+economics&ots;=z6mDn5ku5y&sig;=IseOoHq8tnKVCTl-r3OslkQvZAo#PPP1,M1

Pretty cool book accounting for economic history from early 1800's to 1960's.

Look at the FED, that should give you the direction the economy is going to take. http://www.federalreserve.gov/monetarypolicy/bst.htm

The national unemployment rates continue to climb; know it's 8.1%, on paper. Here are employment rate history from 1948-2009. http://www.miseryindex.us/urbymonth.asp

I have to acknowledge the clinton era because you see a steady decline in unemployment numbers until GW jr came into office, but towards the end he seemed to keep them pretty close to 5-6% range. It was 2008 which just sucked and 2009 is very bad as well. If they can truly stimulate this economy, my guess is that by december09-april2010 we'll start to see a turnaround in that rate which will directly effect the economy and then put some real movement in the stock market.

Side: No

Not to mention the estimated 1.8 trillion dollar deficit we're expected to reach. http://www.npr.org/blogs/money/

It's the second story/topic on the blog.

You must also consider that China is slowly gobbling up US assets as we put ourselves deeper into debt.

Side: No

I believe that two weeks is not enough time to judge if the roller coaster down slide is over. It is my belief that the market will still experience ups and downs. Whether they will be significant is anyone's guess. As far as investing I surely would not go hog wild even though prices are down. Be responsible in your stock purchases and buy in various markets that will be going up in the future...but with all due caution and a very watchful eye.

Side: Be careful we are not stable yet