Less than a week after mandatory minor spending cuts brought a tiny little dose of fiscal sanity to Washington, the Dow Jones Industrial Average has leaped to an all-time high.
But Obama promised that the sequestration would bring economic doom. It’s almost like he bluffed and got called on it.
Strangely, I’ve yet to find an article in state-run media that even makes mention of the sequester spending cuts. But I thought they were to be the defining economic cataclysm of the decade or something. If this keeps up, I’m going to start believing that people who have done nothing with their lives but flap their gums for a living don’t know what they’re talking about.
Maybe we can do another sequester next month?
It took the Dow less than 65 months to rise above its previous high set on Oct. 9, 2007, more than a year faster than the recovery from the Internet bubble.
While the Dow has more than doubled in the four years since its bear-market low, its valuation remains 20 percent less than the price-earnings ratio at the previous peak and 15 percent below its 20-year average.
The 116-year-old Dow jumped 0.7 percent to 14,226.2 today at 9:40 a.m. in New York, climbing above the 14,164.53 record closing level it reached before the global financial crisis. It also eclipsed its previous intraday high of 14,198.1 from Oct. 11, 2007.
UPDATE: Sequester Theme Song