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Actually, it means anyone who owns stocks is getting richer. And that would be about half the popluation, if you include mutual funds. Today, that happy sound you heard was a whole lotta folks getting a whole lot richer.
Well if you consider that a lot of those stocks are a huge indicator of how well American companies are doing, and that American companies doing well is good for the economy, you don't have to break out a calculator and worry about stock ownership percentages.
Well, not exactly, and I say this as a long time investor who hopes the stock market continues to perform well. American companies can do well independent of the economy, or haven't you noticed a lot of their "cost of goods sold" being dependent upon production being moved overseas? Also, many are doing well due to an increase in sales overseas.
But I like rising markets too, with a dash of reality.
Yay Wall Street is having a hay day. Well that's nice. Except I don't give a rats arse' about Wall Street or her Stock Markets. They're just a pyramid scam anyway. Meanwhile, housing costs soar in to the stratosphere, foreclosures hit about 1 in four families in the country, our national debt is approaching Mars,
Don't blame the economy on the foreclosures. Blame it on the lenders who approved home loans to people who couldn't afford them.
And last I heard, the deficit is being brought down faster than expected. Thanks to the increased government revenue due to Bush's two tax cuts.
Good thing the stock market is humming along so nicely, we are going to need it. Seen the price of precious metals lately and does anyone know what this generally indicates?
McClatchy News Service
WASHINGTON --
As the national debt heads toward the $10-trillion mark, generous Americans are sending checks to the federal government.
Donations to the Bureau of the Public Debt have topped $2.5 million so far this year. That's the highest amount since at least 1996.
It's not making much of a dent, though.
For the fifth time since 2001, Congress is raising the debt limit, increasing it by $850 billion to $9.815 trillion. The Senate approved the plan on a 53-42 vote Thursday. That's $9,815,000,000,000.00.
The House of Representatives has already signed off on the plan, without a direct vote.
According to the folks who follow this stuff closely, the national debt has been rising by an average of $1.36 billion per day since September of last year.
And each citizen now has a share of nearly $30,000.
Boy, a Trillion here a trillion there, it might start adding up to some real money one of these days...
Don't blame the economy on the foreclosures. Blame it on the lenders who approved home loans to people who couldn't afford them.
And last I heard, the deficit is being brought down faster than expected. Thanks to the increased government revenue due to Bush's two tax cuts.
Almost...blame it on the credit rating agencies, who gave too high a credit rating for these poorly bundled portfolios. Want to begin to address the problem? You can start by having the rating companies, like Moodys, funded by independent investors instead of the companies issuing the notes.
Almost...blame it on the credit rating agencies, who gave too high a credit rating for these poorly bundled portfolios. Want to begin to address the problem? You can start by having the rating companies, like Moodys, funded by independent investors instead of the companies issuing the notes.
No offense, but I think I'll take the advice of Yeledaf first.
I'm not giving advice, I'm just proving my awesome conservolibertarian principles! If you just let the free market run its course and help out the executives/stock traders enough then more wealth will be created than your wildest dreams could ever imagine! In the hands of 242 people. Let's boom like the 20's!
From what I've read, many lenders were approving loans to those with bad credit just to make the deal.
We are kind of discussing two different, but tangentially related items.
You are right about the lenders and buyers. What I am referring to is that these loans get packaged and sold, on the open market. If the credit rating services were appropriately doing their jobs, in my opinion, the credit worthiness of these offerings would have been graded much lower. This would have effectively put the kabosh on the lenders being able to make these loans, the premium return rates would have made it too expensive. That is the way the credit markets are supposed to price risk, at least in theory.
Ok, I just read a piece on the Austrian theory of business cycle. Well, ok, I read it twice and am still trying to get my mind around some of it. What is the current model used by the Fed to govern whether or not it intervenes with injections of liquidity or the adjustment of the Federal funds rate?
This I am guessing is written for lay people such as myself that have only a cursory understanding of how the Fed adjust rates in order to manipulate or direct economic growth. I would appreciate an injection of views from those with a greater understanding of this economic process.
thanks
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