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Where is the Share Market going this time

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  • #16
    Re: Where is the Share Market going this time

    Andy, another great on point post! To make matters worse we have out of control gov't spending and borrowing, and our continued and growing support of a illegal population. So many wrongs and no progress on any front.

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    • #17
      Re: Where is the Share Market going this time

      Originally posted by Frankiarmz View Post
      So many wrongs and no progress on any front.
      Personally I can't believe that the people in DC are either this blind or this stupid. Well, maybe Pelosi is. But for most of them, that only leaves one option that I can see: They must be corrupt. Unfortunately, this is not a Repub or Demo issue. Despite the rhetoric, there isn't a hill of beans of difference between the two parties. I have always thought that Keynesian economics was just a fancy smokescreen for imposition of a socialist agenda on the US, anyway.

      One thing I would like to point out though, is that with all this talk about the Bush tax cuts, the fact of the matter is that the Government has been increasing taxes on the Citizens through stealth means. Even though QE ended, the Fed has kept interest rates low. The only way this can happen is by increasing the money supply. This in turn devalues the dollar, which hurts everyone but especially hurts those with significant dollars or dollar-based assets. And what group would feel that pain? Well, it's the high-earners and the corporations that have significant cash, the very group that is catching flak for receiving the benefit of the Bush tax cuts. Expansion of the money supply also devalues the Federal Debt... so, the fact of the matter is that the high earners that the Pres and others in DC are wanting to tax are already being taxed, quite covertly, to help pay down the debt in real terms. Just another case of monetary burglary by the the Government that is supposedly of the People, by the People and for the People. We need to ask... "Which people exactly??"

      But, better be careful... lest we are arouse the ire of the "Everything's just fine" crowd, who no doubt think that recent events are "no problem".

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      • #18
        Re: Where is the Share Market going this time

        Andy, I wonder what the Washington experience is like for new and seasoned politicians? Do newly elected politicians get caught up in the grandness of the experience, while the older ones become complacent? Do they both become so insultated and removed that they cannot possibly understand the needs of their constituents? They don't have to report or divulge donations to "their" charities, so there is room there for corruption. I think for the most part the process is designed to work slowly and too much time has been lost for that to be acceptable. I joke with my neighbor that we live in a sort of wonderland, we don't have any serious problems, the weather is usually fine, zero crime, etc. We are concerned for our fellow Americans and country but that is only because we are aware and stay current with the News. Most of the "everything is fine crowd", are simply too busy in their own little world to let in the truth beyond. They think if they don't pay attention it can't impact their bullet proof lives. I wish them luck. I still think that while revenue must increase and spending come under control, Amercians need to be employed producing most of what they consume. I only hope the snails pace of Washington will be sufficient to do what is needed to save us.

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        • #19
          Re: Where is the Share Market going this time

          I don't know of course what it's like to be a member of Congress, but I suspect that in this day and age it takes pretty substantial backing in terms of both money and influence to even get into the House of Representatives. So I suspect that many of the newbies aren't really all that new to the process. Just a thought... again, I don't know any more than anyone else on that.

          You are so right about the snail's pace. Even that would probably be ok, except that at the end of the snail's journey they seem to always take the decision that results in us getting screwed. You would think that if they simply didn't know what they were doing, once in a while... if for no reason other than probability... they would get something right. But they don't. So then we wait for another eternity, and they give us something worse still. Some people blame Obama, some blame Bush. The truth is that the structural problems we face today have been brewing - no lie - since about 1909. It is true that the most recent two Presidents have been remarkably bad... but there have been others. FDR was, IMO a terrible president, even though I think he probably thought he was acting in the interest of the Nation. I wonder if these last two guys actually beleive they acted in our interest? I guess we'll never know what they really think. But I know that they sure screwed things up.

          I actually like globalization and imports. Corvettes are cool, Caddies are fine... but I used to really enjoy my European cars. Sadly, I got rid of them and bought new Toyotas made right here in the USA with 80% US content. They're damn nice little cars, too. Made 20 miles away in Fremont, CA. And no squeaks, rattles of knobs falling off. But sadly, just don't have the style or feel of Jaguars. The thing is, imports are fine and represent no problems at all if only we EXPORTED the same (preferably more) than we import. If US consumer markets swallowed up nothing but imports (more or less the case today) it would be fine as long as the dollar value of what we export was at least equal. If we could even - gasp - export a little more than we import, then there would be a touch of wealth entering the Country instead of leaving it... and, Gov't parasitic behavior notwithstanding, over time our standard of living would actually improve. But reality is that the US, while in decline, is still the largest consumer market in the world. That's why we're the target. If you can't get a chunk of the US market, there is no way you are going to show a ROI on a manufacturing investment. So the practical matter is, as you've said, we are screwed unless we can start producing more of what we consume. With the crew in DC setting the rules... well, all I can say about that is, "buy gold".

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          • #20
            Re: Where is the Share Market going this time

            Our Aus share market nose dived this morning then bounced into the black after hearing your fed is go to do another bail out printing more money hip hip aray ?????

            Tony

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            • #21
              Re: Where is the Share Market going this time

              Originally posted by AFM View Post
              Our Aus share market nose dived this morning then bounced into the black after hearing your fed is go to do another bail out printing more money hip hip aray ?????

              Tony
              The Fed is meeting later this morning. No one knows what they're going to do. They've said no more QE, but they've done 180s before. I have always thought that there would be more QE, simply because the Federal Gov't has no choice but to monetize debt. I suspect as a minimum they'll reaffirm that the Fed will maintain very low interest rates for the time being. They've been doing this for quite a while. It has been great for the bottom line of banks, hasn't helped with jobs at all, has probably helped business show good profits (although the direct Gov't handouts have been the real reason for that). What the Fed has really done is kept mortgage rates low, which in turn has kept housing prices from free-falling. This is Bernanke's biggest fear, and with good reason. But that's a demon he and the Gov't created in the first place.

              The Fed has put themselves between a rock and a hard place. Their monetary policy is like the proverbial finger in the leak. It slows the leak but does nothing to repair the hole. When they pull their finger out, the water starts gushing again. This has been proven beyond much doubt over the last 3 years. So no matter what the Fed does today, the effect will be short-term.
              Last edited by Andy_M; 08-09-2011, 09:47 AM.

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              • #22
                Re: Where is the Share Market going this time

                So yesterday the market rebounds 400 or so. Hmmmmm I wonder why that happened? Not the official administration reason, the real reason. Watch for it folks....................Another government stimulus is a coming
                sigpic

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                • #23
                  Re: Where is the Share Market going this time

                  Originally posted by TheMaster
                  Good friend of mine just bought a $500,000 house 4,000 sq ft on a golf course in Baton Rouge for 250,000. The value of that home will come back....in how long I dunno but eventually it will. It might be 20 years but so what...in the mean time he plays golf and his children have a nice home to grow up in. Theres plenty of wealth in America....just look around you.
                  If he bought it for $250,000 it is not a $500,000 home; it is a $250,000 home. That kind of thinking is what got us into this mess. if it is worth $500,000 in 20 years, at 3.5% inflation then the inflation adjusted return would be 0.5%.

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