B-Large Posted March 5, 2013 Share Posted March 5, 2013 That's the game, isn't it? Artificially inflate the market, get Main Street's confidence up (be it with sub-prime mortgages convincing folks to buy homes they can't afford, junk bonds of the 80s, dot com stocks of the 90s) then pull the rug out from under them, causing a credit crunch and creating more debt-slaves for the banks to make incalculable amounts of money from, Happened in the '20s, '70s, '80s, '90s, and '00s. It'll happen again and again. I'm thinking somewhere around '17 this time around. I don't know WCIP, people of all makes and models get a green tint in their eyes and drool over the fast money that can be made (or perceived can be made), so I don't know if it is some conspiracy between the Banks, CEO's, the Romneys, Kochs, Buffet and Walmart...all to bilk the middle class man out of his earned income paycheck, house and dignity. I had freinds who cashed out retirement accounts so they could buy a bunch of of real estate during the boom.... I am not sure of one that didn't get taken to the cleaners in one way or another, but hey, thats capitalism.... sitting here today I could be seeing my friends with tremendous wealth and wishing I wasn't a slow and steady type investor... but in the end, its worked for me and my family... Warren said: "when other are greedy, be scared... when others are scared, be greedy"- thats makes alot of sense to me, even though its hard to train the brain to think that way. A very, very wealthy patient of our once told me "There is no easy way to make money, none"- its true, its often hard work, careful study and persistence... and takes time to make money... As in anything in life, you are repsonsible for yourself and the money in your pocket. If you don't understand Stocks (and I really don't, I get the concept of stocks and the stock markets) don't buy them. If you don't understand leverage and fluctutation in illiquid assets, don't buy real estate. I emptaize with people who get burned because they are into someting they don't get, but I still point the finger at them Link to comment Share on other sites More sharing options...
B-Man Posted March 6, 2013 Share Posted March 6, 2013 Last week during President Obama's (Campaign) press conference regarding sequestration, he clearly placed blame squarely on the Republicans for any negative economic numbers that may come out in the next three to six months. My question is, when positive economic figures come up in the next three to six months, such as the record Dow finish, will he give credit to the Republicans for those numbers? Will many member of the Media ask him ? Only in a world where honesty in government exists.............................................. Link to comment Share on other sites More sharing options...
keepthefaith Posted March 6, 2013 Share Posted March 6, 2013 It's a general equities bubble, once again made possible by cheap lines of credit. What happens when bubbles burst? Buy Link to comment Share on other sites More sharing options...
Nanker Posted March 6, 2013 Share Posted March 6, 2013 There's always a bull market going on somewhere. When the opportunity lessens, the money making flows like water to the next. Link to comment Share on other sites More sharing options...
birdog1960 Posted March 6, 2013 Share Posted March 6, 2013 anybody notice this piece? http://finance.yahoo...Y3Rpb25z;_ylv=3 if 2007 was a bubble then what is this? Link to comment Share on other sites More sharing options...
3rdnlng Posted March 6, 2013 Share Posted March 6, 2013 Today's stock market numbers are due to cheap money and inflation. Anyone thinking it's because of a booming economy is nuts. Link to comment Share on other sites More sharing options...
Keukasmallies Posted March 6, 2013 Share Posted March 6, 2013 Thank you, Dear Leader, for guiding us through the rocks and shoals of economic peaks and valleys...NOT. It's amazing what is accomplished when the ship is relatively rudderless; imagine what could be possible if POTUS actually gave a damn about the welfare of ALL of us. Link to comment Share on other sites More sharing options...
Magox Posted March 6, 2013 Author Share Posted March 6, 2013 (edited) Today's stock market numbers are due to cheap money and inflation. Anyone thinking it's because of a booming economy is nuts. Well, the ingenuity of corporate America and their ability to cut costs and increase efficiency and productivity has a lot to do with it as well. Lets not deny facts, corporate profits are at record highs and soaring. Having said that there is a huge disconnect between Main Street and corporate America. Fortune 500 companies are reducing costs due to more global labor competition and increased technologies that reduces the need for human capital, which of course leads to an even larger income disparity between the white and blue collars. There is no sinister culprit in this development, it's just economic evolution, and to be honest, the U.S middle class blue collar worker may be the victim of this occurrence, but globally speaking, it has increased the standard of living for many people outside the U.S, specially in the BRIC nations. So rather than trying to find a boogie man, which many liberals incessantly do and come up with faux "solutions" such as policies aimed at "evening the playing field" or tax policies designed in the name of "fairness", which is all code for wealth distribution, meant to attempt to solve their perceived inequities by skimming money from those that have and transferring it to those that don't, which of course does nothing to solve our economic woes. We should be concentrating our efforts on true economic reform. Something that will encourage all these displaced workers into more training in future areas where human capital will be in more demand. The best way to do this is by tying unemployment and welfare benefits to job retraining programs. If you don't want to participate and become a more productive member of society, then your benefits get reduced. Simple as that. I think that is fair. Edited March 6, 2013 by Magox Link to comment Share on other sites More sharing options...
TPS Posted March 7, 2013 Share Posted March 7, 2013 A few months ago I suggested that the economy was gaining strength (which was why I said bullish bets were pushing up oil prices), but that didn't sit well with Obama haters. Despite the payroll tax increase and the recent cuts, the economy seems to have some decent momentum independent of stupid policies from both sides... Link to comment Share on other sites More sharing options...
....lybob Posted March 7, 2013 Share Posted March 7, 2013 A few months ago I suggested that the economy was gaining strength (which was why I said bullish bets were pushing up oil prices), but that didn't sit well with Obama haters. Despite the payroll tax increase and the recent cuts, the economy seems to have some decent momentum independent of stupid policies from both sides... Please, haven't you heard Magox tell you that we are in an inflationary hell because of Obama,s QEs , I mean who are you going to believe ( precious metals, commodity metals, hydrocarbons, currency exchange rates, interest rates and historical inflation norms) or Magox's infallible neo-liberal Austrian wisdom. Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted March 7, 2013 Share Posted March 7, 2013 Please, haven't you heard Magox tell you that we are in an inflationary hell because of Obama,s QEs , I mean who are you going to believe ( precious metals, commodity metals, hydrocarbons, currency exchange rates, interest rates and historical inflation norms) or Magox's infallible neo-liberal Austrian wisdom. Actually, it's the commodities indexes Magox is drawing his insights from. They indicate about 9% annual commodities inflation since QE began. Link to comment Share on other sites More sharing options...
Rob's House Posted March 7, 2013 Share Posted March 7, 2013 (the pull out method is only effective in business by the way), Not true, you just have to pull out at the right time. Link to comment Share on other sites More sharing options...
Koko78 Posted March 7, 2013 Share Posted March 7, 2013 Not true, you just have to pull out at the right time. Bad things can happen if you mistime it. Link to comment Share on other sites More sharing options...
B-Large Posted March 7, 2013 Share Posted March 7, 2013 (edited) Its like Big Ern McCracken said, "that paternity suit is not a case, that girl's is a stone faced liar, he pulled out of her really early on that one... " Edited March 7, 2013 by B-Large Link to comment Share on other sites More sharing options...
....lybob Posted March 7, 2013 Share Posted March 7, 2013 Actually, it's the commodities indexes Magox is drawing his insights from. They indicate about 9% annual commodities inflation since QE began. I'm looking at this http://www.indexmundi.com/commodities/ and draw different conclusions Link to comment Share on other sites More sharing options...
Magox Posted March 7, 2013 Author Share Posted March 7, 2013 (edited) Please, haven't you heard Magox tell you that we are in an inflationary hell because of Obama,s QEs , I mean who are you going to believe ( precious metals, commodity metals, hydrocarbons, currency exchange rates, interest rates and historical inflation norms) or Magox's infallible neo-liberal Austrian wisdom. Wow, your stupidity has no limits. I said that we have higher inflation because of current monetary policy and never made any mention of Obama's policies contributing to it, moron. And uh, the price of precious metals don't support whatever it is you are trying to say. Not to mention that currency exchange rates is a horrible point of reference considering everyone is involved in the same monetary policy. Oh, you think that interest rates tell the whole story? Sorry to burst your bubble youtube boy, but interest rates move up and down for many different complex reasons. So I guess when bond yields were soaring in Spain, Ireland, Portugal it was because of inflation? There is this little dynamic that you were unaware of and that you are incapable of understanding which is this reserve currency status we have. When the rest of the world believes that there aren't too many places to invest, they flock to safety, which drives demand for our debt up and pushes yields lower, despite all our domestic issues. As El Erian and Bill Gross would like to say, We are the cleanest dirty shirt. America is the cleanest, dirty shirt in terms of financial markets and where money is moving towards, mandy. out of euro land. out of all of the risky peripheral countries because America is a safe haven. everything an investor desires.relatively low debt. a reserve currency status. domination of the global military stage, et cetera. but the message is well just to conclude the point, you know, suggest there may come a time and the king has no clothes that where the king’s cloamove reveals a body struggling to stay alive with the steroids and we have seen it last couple of years. Now I understand that your little pea brain doesn't quite understand all the complexities that come with the bond markets and currency exchanges, but I mean before you cast a stone, don't you think that you should have at least a little knowledge on the subject before you opine? Wouldn't that make at least a little sense? Why don't you run along and form your next thought from a youtube video. A few months ago I suggested that the economy was gaining strength (which was why I said bullish bets were pushing up oil prices), but that didn't sit well with Obama haters. Despite the payroll tax increase and the recent cuts, the economy seems to have some decent momentum independent of stupid policies from both sides... And yet GDP growth is flat. Good call. Edited March 7, 2013 by Magox Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted March 7, 2013 Share Posted March 7, 2013 I'm looking at this http://www.indexmundi.com/commodities/ and draw different conclusions When round one of QE began in November of 2008 commodities prices were 36% lower than they are today, and I'm using the exact same data you are. Link to comment Share on other sites More sharing options...
....lybob Posted March 7, 2013 Share Posted March 7, 2013 When round one of QE began in November of 2008 commodities prices were 36% lower than they are today, and I'm using the exact same data you are. that's what you get from that graft? not that commodities started rising in 2003 hit peaks 2008 then crashed and have been moving up to pre-crash levels? so now the rise is just QE so what caused the rise in commodities before ( the economic rise of China, India and the rest of the developing world) or was that QE too? Link to comment Share on other sites More sharing options...
TPS Posted March 7, 2013 Share Posted March 7, 2013 Actually, it's the commodities indexes Magox is drawing his insights from. They indicate about 9% annual commodities inflation since QE began. There you go again...Do you truly want to claim that QE was responsible for price increases dating to the the near bottom of the post-bubble crash? Any objective person would understand that stabilizing the economy would lead to a recovery in prices to some level. I know we've had this discussion, but it's really a specious argument. Don't you think we should look at "relative demand" as magox claims? Wouldn't it be more honest to look at where C-price indexes were relative to the pre-bubble level of global GDP? And yet GDP growth is flat. Good call. As I stated then, the first half of the year will be slowed by the payroll tax increase and now spending cuts. I said the second half would generate most of the growth. that's what you get from that graft? not that commodities started rising in 2003 hit peaks 2008 then crashed and have been moving up to pre-crash levels? so now the rise is just QE so what caused the rise in commodities before ( the economic rise of China, India and the rest of the developing world) or was that QE too? Starting from the low number justifies his world view. You won't change that. Link to comment Share on other sites More sharing options...
Magox Posted March 7, 2013 Author Share Posted March 7, 2013 As I stated then, the first half of the year will be slowed by the payroll tax increase and now spending cuts. I said the second half would generate most of the growth. Oh, so the payroll tax increase affected fourth quarter GDP. Okey dokey Link to comment Share on other sites More sharing options...
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