August 19, 2010 | In: Opinion
The Market Is Overreacting
The jobless claims increased to 500,000, highest since November, and the DOW is down 150 points (until now). Most investors apparently that we’re all going to die! Not!
It’s odd that nobody thought about the oil spill, and all the mess it created. The oil spill caused large unemployment in several states, but these unemployed people are or will get money from BP, as part of the $20 billion plan to compensate those legitimately damaged. Of course, these same people will also apply for unemployment, so that they can get the best of the 2 worlds, or make that the best of 3 worlds: money from BP, money from the government, and not having to work.
The jobless claims increased by 12,000 from last month. If you think about it, you can see that much more people lost their jobs than 12,000 because of the oil spill, especially those dependent whether directly or indirectly on the tourism in the affected states. Take those people out of the equation, and you’ll see that the numbers are much better. But again, who cares? Buy the rumor, sell the truth: this is the motto of Wall Street nowadays.