Stocks closed up on Wall Street Wednesday with the Dow Jones industrial average notched its ninth gain in a row, giving the index its longest winning streak in more than sixteen years. Demand for stocks has been propelled this year by optimism that the housing market is recovering and that companies have started to hire.
In an interview, the former president of Chile, Ricardo Lagos, says that today’s global financial crisis is mainly a political failure rather than an economic one. The US will probably do much better in its financial recovery because its central bank, unlike Europe’s, has the powers it needs.
Reich offers four reasons why the stock market is doing so well, while most Americans are doing so poorly.