Saturday, January 07, 2006

Bush Says US Economy Is Strong But Wall Street Prefers China and Brazil

CNN reports that Bush trumpets economy's strength:

CHICAGO, Illinois (AP) -- President Bush shrugged off a report showing weaker-than-expected job growth on Friday and declared that "the American economy heads into 2006 with a full head of steam."

Bush rattled off a string of recent government reports suggesting a growing U.S. economy, and he used his speech to the Chicago Economic Club to prod Congress to extend his administration's tax cuts that are due to expire.

"In 2005, the American economy turned in a performance that is the envy of the industrialized world," Bush said.

Wall Street Disagrees With Bush

Over the five years of the Bush presidency, the Standard and Poor Index of the 500 largest US Companies has grown an anemic 0.4%. During the past year, the S&P Index has grown 4.8%.

During the same periods, the Vanguard Emerging Markets mutual fund has grown 20.7% for the five years and 30.8% during the last year. Emerging Markets are in Asia, Africa and Latin America.

Similar mutual funds at Vanguard and Fidelity have also out performed the US market by a wide margin.

I wonder where the Bush family has its money, in the US market or in the foreign markets with their dramatic growth rates?


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