Critique: does an improving stock market mean an improving economy?

In Jessica M.’s blog does an improving stock market mean an improving economy, she argues that a variety of factors contributed to the current state of the economy. Some of which were AIG, Ben Bernanke, and rising unemployment. I agree with her, with the following paragraphs.
Reuters states that there are some encouraging signs in the credit markets, and that U.S. economy is facing a prolonged housing market downturn and credit and liquidity problems in the money markets, and high global oil prices are also taking their toll. Also, 130 million Americans will receive tax rebates, which will be more money that the government doesn’t receive, and could further increase the national debt and inflation. Furthermore, why are we so anxious to lend money back out when job market is unstable, and it could create the same problem we are currently in. Why do we want to put money back in the hands that couldn’t pay their past debt. Some of the home buyers are those that lost their home because they couldn’t afford the mortgage. We can now say that we live in a country where debt is encouraged, and when worst comes to worst you just write it off. We give money back to people who can’t manage it in the first place, and they take on so much debt that it eventually consumes them.

Also, the Chicago Fed president expects the economy to recover in the second half of this year. This may sound good, but nothing is set in stone. After all, who would have predicted that the economy would just plummet like it has, when it just seemed to keep increasing in value.

Some things take time to fix, and the stock market didn’t get the way it is overnight. Some of the top economic and financial people are trying to work on how to fix this problem, and are still baffled on what to do. Ben Bernanke isn’t the only one where it got the economy to where it is, and where is Allan Greenspan when you need him. Some of Greenspan’s policies could have contributed this turmoil.

In an age of get rich quick schemes, scams, and identity theft it is fair to say that greed is what motivates these criminals, and greed is what ultimately caused the huge collapse in the stock market. Greed is what have caused investors to lose it all, and what has motivated the desire for instantaneous returns in a short period of time. Just look at Bernie Madoff, how he took money from new investors/clients and paid returns to previous clients with their money.

Ethical business management states that greed has harmed the economy, and it started a long time ago. It began in the nineties with a stock market scheme to make money called “day trading.” Thousands speculated to gamble for quick one day profits. Thousands lost everything. Some also took on too much risk, fueled by greed, and made make or break trades.


Links:
http://www.reuters.com/article/ousiv/idUSBOM20597220080424

http://www.forbes.com/feeds/afx/2008/05/12/afx4996768.html

http://ethical-business-management.suite101.com/article.cfm/an_economic_crisis_bank_failures