by Chris Banescu

The  latest economic data released  Thursday confirms what all Americans, especially business owners, already  knew.  Economic growth has slowed down to a measly 1.5% (from 2% the  previous quarter), job growth continues  to languish with nationwide unemployment  at a dismal 8.2%, consumer confidence has fallen to its lowest level this year,  and consumer spending is also tanking.  Household purchases, which  represent approximately 70% of GDP, grew at the slowest pace in a year.   Recent surveys show that Americans have  lost approximately 40% of their net worth in the last few years, and poverty  rates are reaching levels not seen in this country since the  1960s.

So,  why are the markets up?  Everything confirms that our bleak economic  situation just got worse.  Obama’s anti-business, anti-job growth, and  punitive taxation schemes have not changed.  The administration’s stifling  and oppressive regulatory policies continue unabated.  The European  situation has not improved or stabilized much, despite repeated assurances from  the European Central Bank.  The Federal Reserve in the United States is  already out of options, despite speculation from the so-called financial  “experts” who believe that another round of “stimulus” may occur, even though  the Fed signaled just the opposite last

week.   Given the poor record of previous easing and the near-zero interest rates, there  is very little the Fed can do now.

So  what could possibly have influenced the financial markets to push the Dow Jones,  S&P 500, and Nasdaq averages into solid  positive gains for the day?

Interestingly  enough, the Rasmussen Reports released yesterday their latest Presidential  Tracking Poll.  It shows that for the first time in this election  cycle, presidential candidate Mitt Romney has pulled ahead.  He now has  a 5-point lead over President Obama.  Mr. Romney now polls at 49% of  voter support versus 44% for Obama.

The  same poll reveals that 49% of Americans trust Romney to better handle the  economy, while only 43% place that kind of trust in President Obama.   Nearly a majority of Americans are finally beginning to understand that only a  pro-business, pro-free markets, pro-capitalism, and pro-low taxes president will  get America out of the dreadful financial and economic straits we’re in and put  the country back on the right course.

Could  this be the real reason why the markets responded with such enthusiasm?  I  suspect that that might have something to do with it.

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