Ummmmmmm.....Bilderburgers!
Posted on 02/05/2008 3:34:18 AM PST by Man50D
Housing bubble yes. Stock market bubble no. The markets haven’t been this undervalued in 40 years. Corp America’s bal sheets have never been stronger. We’ll see a big run in stocks into 2009-2010. The only thing that would stop it is Pres B. Hussein Obamana or Pres Hitlery and their love for taxes
World Nut Daily. Nuff said.
Mr. Bolser should demand a refund from “Cracker Jacks”, from whom he obtained his education in Economics.
That right there shows how idiotic the whole article is...
First - IF the Fed could actually pull this off - how does it help? It puts thousands out of work, it bankrupts millions of people, and destroys a whole bunch of folks retirements... In addition, it is in no-way connected to the real reasons for inflation - which are primarily being caused right now by fuel costs - both from the record highs in crude oil, to the hyper-inflated corn prices due the forced ethanol production, and from the lowered dollar value vs. world currencies - due to the Fed's over printing and low interest rates.
But I do question the lowered interest rates. While most of us benefit from it if we actually use credit, it does encourage spending - of money folks don't have.
If the article were right that the Fed would want to slow consumption - the easiest way would be to RAISE interest rates - make credit HARDER to get - especially for consumers who are so over-spending their current income that they will never get their current debt load paid off...
World Nut Daily.
I’m as big a conspiracy nut as anybody when it comes to the Fed making efforts to manipulate the stock market, but this guy has the cart leading the horse.
The Fed knows that the DJII is going down so it will juice the markets as necessary from time to time whenever there is so much as a 3% decline. We saw that two days running two weeks ago. Their intention is not to drive it to 8000, their intention is to try to stop it from going toward 8000 quickly.
The question of whether they already think the DJII’s destiny is 8000 is another matter.
If Bolser is so sure where the stock market is going he should shut up and trade.
Ron Paul’s fault !
Oh, come on now! There are a lot more reasons why WorldNutDaily will never be considered a legitimate news source! This is only one of them......
Asset prices are dropping due to debt destruction, ie decreasing money supply.
LOL!
Now that would be a buying opportunity if there ever was one. I would welcome that. Yes my stocks and mutual funds that I currently have now would be worth a lot less, but the monthly buys that I do would purchase more shares and as you know what goes down must go up. I think all FREEPERS definitely should sign up for the “DRIP” program (Dividend reinvestment program). I have been doing this since 1990.
The Dow returning to 8,000 would put it fairly close to the long-term trendline established after the initial Reagan tax cuts - from 1983 to about 1996, when the tech bubble started (with a big assist from Greenspan) and morphed into the housing bubble. It’s in no way an inconceivable outcome.
Because a deep recession is less harmful than inflation? Idiot!
Meanwhile, while holding the government securities let out by the Fed in the repo agreement, primary dealers are free to utilize the liquidity provided by the repurchase agreement to manipulate the economy in accordance with the Fed's true monetary policy, whether publicly declared or not.
Actually, this type of repo dries up liquidity. Idiot! And exactly how does holding extra Treasuries, for a very short period, allow the primary dealer to "manipulate the economy"?
Primary dealers use the funds provided by the government securities they hold under the repurchase agreements
According to his earlier description, the Fed has the funds, the dealer has the Treasuries. Idiot!
"The primary government security dealer banks are like a private club," Bolser told WND. "You get to stay in the club as long as you take the repurchase agreements and enter the markets to implement Fed monetary policy the way the Fed wants it implemented. Violate the unspoken rules, and you risk being thrown out of the club."
Actually, the rules are very clearly spoken.
"But decreasing the repurchase pool will push the economy down, especially when the primary banks execute monetary policy in accordance with the wishes of the Fed to short the market with future contracts that push the indices down."
That's funny!
Boy is this guy dumb.
Earlier today I spotted this thread and considered commenting, but my problem was that the entire piece was so stupid that I couldn't figure out where to begin.
The idea that loonies are publishing drivel is old news. It's the fact that there are real people on a conservative forum that actually go along with it that never ceases to amaze me.
Well, I guess someone has to be right.
Agree with your comments. I will say on the offchance the Dow DOES get to 8k again, I will put every dime I can afford into the market at that price (S&P P/E ratio would be under 10 if it dropped the same amount and dividend yield would be over 3.5%).
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