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  • Obama Polls Plunge, Stocks Continue Rally, Pain At The Pump 2 The Xtreme, Stock_Creeper Right Again [Edit or Delete]1 comment
    Mar 12, 2012 11:28 AM
    Two of stock_creeper's recent economic and political predictions are coming true. The first is regarding unemployment and jobless claims, which I predicted had bottomed two weeks ago and would begin a new upward trend.

    On March 8th, US Initial Jobless Claims rose 8000 to 362000 and the March 9th unemployment rate remained at 8.3%, despite the consensus calling for further decline.

    The second prediction forecasts a divergence between Obama's polls and the stock market; stocks would keep rallying even as Obama's polls would suddenly plunge.

    A little over one week later, Obama's approval rating have plunged 4% in a breaking new poll, which is making headlines all over the world and will create a feedback loop of more negative press and hence lower polls to come. This decline is attributed to surging gas and oil prices, a resurgent Iran, and the mass realization that Obama is incompetent. As I written numerous times, oil and and gas prices will keep going up for the remainder of the year and there's nothing Obama (or anyone else) can do to stop it.

    How about stocks? They just keep going higher. The DJIA as of March 12, 2012 is up for a 4th day in a row. This stock market always goes up these days.

    The American Automobile Association (AAA) predicts gasoline prices across the United States could average $4.25 a gallon by May, up from over $3.60 today.
    Plunging polls

    WASHINGTON - President Barack Obama's approval rating has plunged below 50 percent and he would be beaten by Republican frontrunner Mitt Romney if November's US election were held today, a poll showed Monday.

    The survey, by ABC News and The Washington Post, indicated that only 46 percent of Americans now approved of the way Obama is handling his job and 50 percent disapproved as he took a hit from rising gas prices.

    The situation was a reversal from early February when 50 percent approved of the president's performance and 46 percent disapproved.

    Pain at the pump is here to stay, and WON'T be recessionary. The consensus is that surging prices will hurt GDP growth. This is patently wrong. Why?

    Money spent on gas, like anything else, goes into retail sales and hence GDP. It doesn't matter if consumers are spending less on one item (clothes or videos games for example) and more on gas, it's the same total spending.

    Buy UGA.

    Gas Prices Top $3.80 a

    The national average price for a gallon of gasoline rose above the $3.80 mark Monday, resuming the advance that has plagued drivers throughout the winter.

    Themes: obama, polls, oil
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  • surging prices don't hurt GDP growth?

    Don't rising gas prices cause people to stop spending and to start saving?
    People avoid the long drive for vacations. Save to buy a more fuel efficient car years later.
    Many companies with products priced competitively can't react quickly enough to changes in gas prices, sometimes due to contractual agreements.
    17 Mar, 01:54 AM Reply Like
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