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Spending Trillions and Trillions of Dollars in unprecedented made up money via corporate bailouts and quantitative easing just to be "less bad than we were" is a terrible ROI. That money could have been given to American consumers, like a consumer bailout, and it would have had a much larger and far-reaching effect on our economy-which is mostly driven by consumer spending.
The Federal Reserve chose to save corrupt banking institutions to keep the financial power structure in place instead of bailing out real people and consumers, which would have grown the economy much more organically-with new honest institutions rising to take the place of those that failed so miserably through their own corruption and ineptitude. Now we are in a much more precarious and dangerous position-with the banks deemed "too big to fail or jail" now controlling even more of our economy.
I don't understand how anyone could honestly support such collusion.
I don't see it as support the collusion but rather make the best of what your hands are delt with. In 2008, I waited with cash to buy more real estate at much cheaper price, not where I am, the most was 20% off. Luckily I bought before it took off again, same with my brother.
What the charts show is that during bull markets more investors buy on margin, and during bear markets they don't. Duh.
Don't imagine that the stock market is predictive of the economy. It's not. It trails the economy, or in this situation, goes off on a psychological fugue that is totally unconnected to the economy. In this case the drop in oil prices left a lot of speculators hanging, but they produce nothing and nobody will notice when they are gone. Meanwhile, falling energy prices will be a huge boost to the economy. With Iran coming back on the crude oil market, many of the speculators will never recover. They will have to go home and nurse whatever paltry $billions they have left.
The stock market itself no longer provides an investment pool for small and growing companies. It has become a liability and a drag on the economy, populated by traders who do nothing but shuffle money from one pocket to the next.
Precisely. The only thing worth noting there is that it does tend to magnify the swings in either direction. Market timing by doomers is still market timing.
What the charts show is that during bull markets more investors buy on margin, and during bear markets they don't. Duh.
Don't imagine that the stock market is predictive of the economy. It's not. It trails the economy, or in this situation, goes off on a psychological fugue that is totally unconnected to the economy. In this case the drop in oil prices left a lot of speculators hanging, but they produce nothing and nobody will notice when they are gone.
...
Wages are 45% of GDP and dropping. The stock market is the economy. Productivity an afterthought.
Wages are 45% of GDP and dropping. The stock market is the economy. Productivity an afterthought.
Yes. The whole focus has shifted to making money without any effort whether it be via Powerball or the stock market. The illusion of wealth had replace real wealth. My house has doubled in value! Simply because one seller found one buyer who is willing to pay an absurd price for a home down the street. The illusion disappears after the first meeting with a real estate agent.
... The illusion disappears after the first meeting with a real estate agent.
Or back in the day two identical cookie cutter houses were sold to the others owner and they put the money in the bank. They spent each others home equity.
markets and the economy certainly do not follow each other .
market gains and corporate profits don't flow together more often than not.
in the book a random walk down wall street 548 nyse issues were tracked and analysand over 5 year periods and the results were the performance had no relationship between the technical and fundamental signals and the actual stock performance ..
ned davis research took another look at the relationship and going as far back as 1927 they found when profits rose more than :
20% the s&p returned a mere 1.3% in gains
10 to 20% saw 5.8% in gains
(-10% to + 10% in profits saw a 9.3% jump in gains
(-10%) to (-25%) drop in profits saw 28.6% gains
(-25%) and lower saw a -28% drop in share price.
no one can effectively deal with this short term .
trying to time buys and sells is an exercise in futility long term. as you see the biggest gains come out of the bleakest of times just when you least expected
I don't know where this logic came from, but an alarming number of people believe this.
Well when all effort by the Fed is toward inducing a stock market Bubble so as to create "wealth effect", then the market becomes its own economy. Of course, it requires that the Fed steal money from savers (interest rates vanish) in order to create this economy. Heck, that is all traders do nowadays - keep buying stocks on margin and sitting there while the Fed provides the fuel for continuous lift offs.
For some reason the Fed is now raising rates or so they say. Maybe because the old economy (you know, the one where people actually produce things) is in really bad shape. Too bad, it's fun making money but just jacking up the price of Amazon.
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