Continuing the Trend.

Hello again. Sorry I have not posted in a little while; work has kept me busy lately.

Let me start of with yesterday's record-breaking day with the Dow. The DJIA soared up over 935 points in a single day! While we are down for the year, yesterday's surge in the Dow ranks as the highest-ever single-day point gain in history, and the 5th highest percent gain ever. The Dow hasn't had a gain of this level percentage wise (the more important value) since the 1930's rebound following the Great Depression.

Perhaps more interestingly, the market today was somewhat stabilized; the Dow ended off by about 75 points.

I'm tired of people thinking this is the end of the world.

Capitalism flourishes (when left alone) in times like these. Yes, there are people who have lost significant amounts of money and others who have lost their jobs. But unless we allow businesses what they need to get the economy rolling again, it won't turn around very fast. Also, any broker worth his weight should have done a reasonable job at making the pain of this downturn minimal.

My plan for fixing the economy at this point goes like this:

• Eliminate the capital gains tax. That's right. Get it outta here. If investors (primarily individuals) see that they have the opportunity to earn money tax-free, money will pour into the market so fast that the Dow could be back up to 14,000 by Christmas. This would also significantly relieve the anxiety and uncertainty felt by retirees and pension managers.
  
• Give big breaks to employers. If you cut down on the amount of money they have to pay out, they'll have more money to hire people. Unemployment will fall. This includes small business owners (A.K.A the Rich people) making over $250,000 a year. Just remember, even though these people make over $250K a year, that doesn't mean they take home NEARLY that amount.
• Provide incentives for businesses who can to hire unskilled labor -- people without college degrees, legal immigrants, teenagers, etc. A construction firm may need an engineer with a Ph.D to design a building, but they don't need a college graduate to hold up a stop sign or dig a ditch.

It's time for people in this country to realize that in order to have something, you have to EARN it. I've earned my family, house, three cars and flat-screen TV. I don't rely on the government to hand me welfare checks or food stamps, even back when I could have qualified for them. A big part of that is because I have not ever stretched myself too thin.

Finally, in a time like this, I think we should have a limit to what is distributed through welfare and entitlement programs. People should have money for being unemployed? Fine. They will no longer get a blank check. They will receive a check with pre-approved items that can be purchased at pre-approved stores. Welfare should not buy beer and stereo equipment.

-Craig