John Adams Posted October 8, 2008 Share Posted October 8, 2008 How's that going to work? Europe and Asia's little bit of Schadenfreude is catching them off-guard and they are not moving as fast or as confidently as the US. They are going to get swamped by this. Europe in particular is a mess because the Euro is not governed by a country and Europe has no central bank. Trying to get all those countries to agree on monetary policy won't happen. This is just a prediction. I would not have thought we'd be at Dow sub 9000 shortly either. But what looms in Europe is bad news and the USA is a better place for money than anywhere on the planet, despite all our problems. Link to comment Share on other sites More sharing options...
John Adams Posted October 8, 2008 Share Posted October 8, 2008 Can I have some examples? I wasn't being a smart ass before. I'm not smart/dumb enough to do that. I can just tell you taht I'm looking for big blue chip stocks whose prices have taken a hit but still pay high dividends. But I'm not in "the game" much. Most of my money is allocated in funds appropriate for someone my age, which means it's getting reamed. Link to comment Share on other sites More sharing options...
The Dean Posted October 8, 2008 Share Posted October 8, 2008 heroin and mail order brides? Well, let's say about 90% on that. The rest, I just pissed away. Link to comment Share on other sites More sharing options...
Acantha Posted October 8, 2008 Share Posted October 8, 2008 Europe and Asia's little bit of Schadenfreude is catching them off-guard and they are not moving as fast or as confidently as the US. They are going to get swamped by this. Europe in particular is a mess because the Euro is not governed by a country and Europe has no central bank. Trying to get all those countries to agree on monetary policy won't happen. This is just a prediction. I would not have thought we'd be at Dow sub 9000 shortly either. But what looms in Europe is bad news and the USA is a better place for money than anywhere on the planet, despite all our problems. While I don't claim to be an expert, I completely disagree with your outlook. While you're right about Europe (after WWII we took advantage of their broke economy and tied them to the dollar, so yeah, they're screwed), Asia's has far stronger future markets than the US right now. Japan may be the exception, but if they ever decide to tell us to F-off, they would probably turn into the new "center" for economics in a suprisingly short time. Again, I'm not saying your wrong (nobody is right or wrong at this point because nobody knows what's going to happen), only that all my study in economics points in the opposite direction. Everything we are doing to "right the ship" right now is pushing us further and further into the hole. They MAY be able to create one more short term "bubble", but I think that's about it. Hopefully I'm wrong. EDIT: BTW, central banking is one of the first things we did to set ourselves down the path to corruption. It gets rid of all the checks and balances on the banking industry. Without it, Fannie/Freddie/AIG/Wychovia, etc wouldn't have been able to happen. They would have been ousted by competing banks long before they were able to go so far under. Link to comment Share on other sites More sharing options...
KD in CA Posted October 8, 2008 Share Posted October 8, 2008 Europe and Asia's little bit of Schadenfreude is catching them off-guard and they are not moving as fast or as confidently as the US. They are going to get swamped by this. Europe in particular is a mess because the Euro is not governed by a country and Europe has no central bank. Trying to get all those countries to agree on monetary policy won't happen. The EU hasn't been able to agree on much and they've had nothing but boom years since they formed. It'll be really interesting to see how it holds together during a real crisis. Link to comment Share on other sites More sharing options...
/dev/null Posted October 8, 2008 Share Posted October 8, 2008 Well, let's say about 90% on that. The rest, I just pissed away. Milwaukee's Best? Link to comment Share on other sites More sharing options...
John Adams Posted October 8, 2008 Share Posted October 8, 2008 Again, I"m not saying your wrong, only that all my study in economics points in the opposite direction. Everything we are doing to "right the ship" right now is pushing us further and further into the hole. They MAY be able to create one more short term "bubble", but I think that's about it. Hopefully I'm wrong. I'd love to argue but I have no idea. Predicting where this heads is like walking the stairs in an Escher. Link to comment Share on other sites More sharing options...
The Dean Posted October 8, 2008 Share Posted October 8, 2008 Milwaukee's Best? I am ashamed to admit that I spent a very small amount of my earnings on Milwaukee's Best Ice. I have also spent several dollars on Steel Reserve. Let me just add that I was very poor and desperate, at the time. Link to comment Share on other sites More sharing options...
BillsWatch Posted October 8, 2008 Share Posted October 8, 2008 Dow is overrated and is still overrated. It has been speculative for years. Link to comment Share on other sites More sharing options...
Chilly Posted October 8, 2008 Share Posted October 8, 2008 I am ashamed to admit that I spent a very small amount of my earnings on Milwaukee's Best Ice. I have also spent several dollars on Steel Reserve. Let me just add that I was very poor and desperate, at the time. I spent a few years enjoying (lol) Steel Reserve. High Gravity Beer, baby! My roommate still wont' drink beer, due to one of those nights years ago with Steel Reserve. Link to comment Share on other sites More sharing options...
The Dean Posted October 8, 2008 Share Posted October 8, 2008 I spent a few years enjoying (lol) Steel Reserve. High Gravity Beer, baby! My roommate still wont' drink beer, due to one of those nights years ago with Steel Reserve. Steel Reserve! Best bang for the poor man's buck. Link to comment Share on other sites More sharing options...
Chilly Posted October 8, 2008 Share Posted October 8, 2008 Steel Reserve! Best bang for the poor man's buck. Exactly why we poor college students drank it. It was either that, or if we needed liquor, Kentucky Deluxe. Link to comment Share on other sites More sharing options...
HopsGuy Posted October 8, 2008 Share Posted October 8, 2008 Europe and Asia's little bit of Schadenfreude is catching them off-guard and they are not moving as fast or as confidently as the US. They are going to get swamped by this. Europe in particular is a mess because the Euro is not governed by a country and Europe has no central bank. Trying to get all those countries to agree on monetary policy won't happen. This is just a prediction. I would not have thought we'd be at Dow sub 9000 shortly either. But what looms in Europe is bad news and the USA is a better place for money than anywhere on the planet, despite all our problems. Um, what? Link to comment Share on other sites More sharing options...
John Adams Posted October 8, 2008 Share Posted October 8, 2008 Um, what? Sorry, having something called a central bank and getting it to act with so many puppet masters is another thing. There's no way all the countries can agree on what to let it do. How could it raise money? Raising taxes? That's a country by country issue. So while it's called the central bank, it's had little work to do because the EU has been in such a boom since its inception. Things are going to be really hairy now that action is needed. Most countries are already preferring their own country-by-country solution rather than trying to fix the entire EU. (For example, why should Spain pay for the sins of Germany and vice versa.) I suspect that will continue to be the case. How the EU comes through this will be interesting but not smooth. In the US, banks have deposits of 96 cents for every dollar loaned. In Europe that ratio is 1 to 1.4 Euros--not a good time to be a European bank. Link to comment Share on other sites More sharing options...
HopsGuy Posted October 8, 2008 Share Posted October 8, 2008 Sorry, having something called a central bank and getting it to act with so many puppet masters is another thing. There's no way all the countries can agree on what to let it do. How could it raise money? Raising taxes? That's a country by country issue. So while it's called the central bank, it's had little work to do because the EU has been in such a boom since its inception. Things are going to be really hairy now that action is needed. Most countries are already preferring their own country-by-country solution rather than trying to fix the entire EU. (For example, why should Spain pay for the sins of Germany and vice versa.) I suspect that will continue to be the case. How the EU comes through this will be interesting but not smooth. In the US, banks have deposits of 96 cents for every dollar loaned. In Europe that ratio is 1 to 1.4 Euros--not a good time to be a European bank. They did manage to work in concert with other Central Banks to lower rates, which I agree is surprising. Also, this move is completely opposed to their normal "fight inflation" stance they've been in. "The ECB actions in this extraordinary environment will be the basis of study for economists in years to come." Sorry, I slipped into Cramer mode there for a second. I'm much better now. Link to comment Share on other sites More sharing options...
GG Posted October 8, 2008 Share Posted October 8, 2008 They did manage to work in concert with other Central Banks to lower rates, which I agree is surprising. Also, this move is completely opposed to their normal "fight inflation" stance they've been in. "The ECB actions in this extraordinary environment will be the basis of study for economists in years to come." Sorry, I slipped into Cramer mode there for a second. I'm much better now. Without true enforcement and regulatory powers over the private financial sector in the countries it oversees. Thus, a central bank in name only, because it has to play second fiddle to the finance ministers of each constituent country. Link to comment Share on other sites More sharing options...
HopsGuy Posted October 8, 2008 Share Posted October 8, 2008 Without true enforcement and regulatory powers over the private financial sector in the countries it oversees. Thus, a central bank in name only, because it has to play second fiddle to the finance ministers of each constituent country. Replace 'Countries' with 'Exchanges' and it sounds just like the SEC. It's all very beguiling. Tiptoeing through these land mines, while exhilarating, is taking years off of my life. Too many talking heads jabbering about how this is the time to buy for it to be a true bottom. We need 'blood in the streets' then a nice long base to work this off. By then we'll be France. Link to comment Share on other sites More sharing options...
taterhill Posted October 8, 2008 Share Posted October 8, 2008 Replace 'Countries' with 'Exchanges' and it sounds just like the SEC. It's all very beguiling. Tiptoeing through these land mines, while exhilarating, is taking years off of my life. Too many talking heads jabbering about how this is the time to buy for it to be a true bottom. We need 'blood in the streets' then a nice long base to work this off. By then we'll be France. every time I see a selloff like this I think of Randolph Duke.......SELLLLLLLLLLLLLLLLLLLLLLLLLLLL Link to comment Share on other sites More sharing options...
GG Posted October 8, 2008 Share Posted October 8, 2008 Replace 'Countries' with 'Exchanges' and it sounds just like the SEC. It's all very beguiling. Tiptoeing through these land mines, while exhilarating, is taking years off of my life. Too many talking heads jabbering about how this is the time to buy for it to be a true bottom. We need 'blood in the streets' then a nice long base to work this off. By then we'll be France. Hence, not a central bank. What's with today's roller coaster? Link to comment Share on other sites More sharing options...
HopsGuy Posted October 8, 2008 Share Posted October 8, 2008 Hence, not a central bank. What's with today's roller coaster? Fear & Hope in quite a sumo match. I've been bearish (and mostly wrong) since oil cracked (no pun intended) $70/bbl on the way up (~ Spring '06). I, like a lot of people, knew this was coming. I just thought it would come a lot sooner. When it didn't, I thought it would come later. One of the things I track is the percentage of stocks in the S&P 500 trading over/under 5 different moving averages. Yesterday was the first time all 5 were in single digits since I've been following it. I have no idea what it means, though. Link to comment Share on other sites More sharing options...
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