Strong auto sales to start of the year thrusted Dow Jones Industrial, and it closed above the 14,000 mark for the first time since before the financial crisis when it dropped down to 8000.
Is this just part of a cycle or is it a start for optimism for our economy despite the recent debates?
How does this provide more jobs?
Do you think this milestone will boost investor confidence?
Interesting! I actually had a conversation about boosts in auto sales this morning with my dad. My dad, who lives in Metro Detroit, was telling me about new development projects both GM and Chrysler having going on. He was sure that in the next few years we will be experiencing steady economic growth and that the boom is starting right now.
ReplyDeleteThough I would like to agree with my dad, I think he is being slightly optimistic. Is our economy better than 2008? Most definitely! With business cycles what must come down must eventually go up, so it makes sense we are doing better than a few years ago. We are experiencing improving, but I would not say we are experiencing a boom at this time. In order for our economy to see large growth some progressive factor must cause the boom (i.e. the dotcom boom, tech boom, etc.). At this point in time I believe we are experiencing improving but still need to be wary about shocks from the recent financial crisis.
I think this is both part of the cycle and a reason to be optimistic. I think things are finally starting to look up for the economy. I think this news will start to boost both investor and consumer confidence, which are both extremely important in sparking an economic come back. Hopefully, this economic comeback does better than the 49ers' attempted comeback last night... :)
ReplyDeleteI think this milestone will continue to boost investor confidence and I also agree with Bianca's point. These numbers should be seen as a mild improvement. The economy must continue making small improvements before we have "steady" economy.
ReplyDeleteThe economy is doing a lot better but things are still very fragile and I do believe that this is the final confidence boost the United States will need to over come this recession.
ReplyDeleteThe economy is still recovering, however there is a huge uncertainty remaining. I also agree with Rohitha that things are still fragile in the economy. This milestone will continue to boost investor confidence and hopefully to be a good sign that the economy is coming back.
ReplyDeleteI am definitely encouraged that our auto sales are up. That is good news, especially for Michigan. Like everyone else is pretty much saying, it's encouraging but we have to be careful. I am glad to see that no one seems to be taking good news too far since that could have adverse effects if things were to go downhill.
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