Will Obama be able to ride out the stock market bubble? (unemployment, Congress)
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We all know this growth is phony. The question is whether the collusion of businesses and the government has enough accounting tricks up its sleeve to keep this party rolling through the end of next year.
We all know this growth is phony. The question is whether the collusion of businesses and the government has enough accounting tricks up its sleeve to keep this party rolling through the end of next year.
Not if the fed starts tightening money and raising interest rates. It's looking like Yellen is about to start doing just that.
Besides, this country lives on debt bubbles as we bounce from one to the next. After all, that's what a fiat currency is based on... debt!
Stock markets around the world have shattered records.
Central banks are primarily responsible.
The difference between this bubble vs dot com is that companies have a lot more cash on hand. Apple has $ 175 billion. Thet can weather downturns or use it to boost growth.
Unlike the housing bubble ( which were also global) most people are generally not using gains to live beyond their means and in doing so, goosing the economy. They are not prematurely withdrawing money from their 401k accounts to take swell vacations. Taxes and penalties have been effective to discourage this sort of behavior.
The US rally is primarily due to the Republican success in slowing down the anti-growth, anti-jobs agenda of the Democrats. Therefore, the needless burdens inflicted on the economy by Democrat policies have ended up slowing growth, not ending it, producing a steady economy with sub-par growth but no boom.
There will not be a bust until we have a boom. And Democrats have regulated and legislated booms out of existence for the present.
Translation: the economic success under this administration needs an explanation.
Quote:
Originally Posted by DavidRudisha
The question is whether the collusion of businesses and the government has enough accounting tricks up its sleeve to keep this party rolling through the end of next year.
Of course they do. It's not even a question. It's the government. They regulate the currency, thus the markets. Get over it.
We all know this growth is phony. The question is whether the collusion of businesses and the government has enough accounting tricks up its sleeve to keep this party rolling through the end of next year.
It is all planned out to crash on the next Republican President and congress. To place blame on them, to gain control again.... Just to do it all over again.
Mean while, watch the other hand.
We all know this growth is phony. The question is whether the collusion of businesses and the government has enough accounting tricks up its sleeve to keep this party rolling through the end of next year.
Here's a hint. Profits are non-partisan.
Mixing politics and portfolios is a fool's errand.
Quote:
Originally Posted by DavidRudisha
We all know this growth is phony.
Don't fight the tape. Been trading long or is this your 1st rodeo?
The US rally is primarily due to the Republican success in slowing down the anti-growth, anti-jobs agenda of the Democrats. Therefore, the needless burdens inflicted on the economy by Democrat policies have ended up slowing growth, not ending it, producing a steady economy with sub-par growth but no boom.
There will not be a bust until we have a boom. And Democrats have regulated and legislated booms out of existence for the present.
Not sure if serious... You just can't tell around here.
Translation: the economic success under this administration needs an explanation.
The explanation is that with super-low interest rates and easy access to capital, the stock market is the only real place for people to currently invest their money. Is someone with money to invest going to put it in a "high-yield" savings account that earns 0.75%? Not when the stock market averages over 10x that return.
The rich have gotten richer at a faster pace under Obama than in almost any other time in history. Money has been cheap to borrow for several years, which has led to market gains that do not match what's happening in the economy. Real unemployment is still high. Wages are stagnant.
This is undeniably a bubble, and it's going to burst. When it does, the rich will bail out and buy back in after the dust has settled, which is what they do after every bubble, and the gap between rich and poor will get even larger.
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