Posted on 04/03/2009 2:22:09 PM PDT by jveritas
Can someone tell me why Wall Street is going up and up when the fundamentals of the economy are getting worse and worse?
Is 8.5% unemployment rate not bad news anymore?
Is the worst unemployment rate in 26 years not bad news anymore?
Is laying off over 700,000 people last month not bad news anymore?
Is a severely shrinking GDP not bad news anymore?
Is an increase in home foreclosure not bad news anymore?
Is an increase in mortgage default not bad news anymore?
Is wasting trillions of dollars on welfare and socialist programs not bad news anymore?
Is massive increase in taxes not bad news anymore?
Is doubling and tripling the national debt not bad news anymore?
Is the government taking over banks and corporations not bad news anymore?
Is the government limiting the salaries of executives not bad news anymore?
Is the government removing a CEO of a private company not bad news anymore?
Is Socialism not bad news anymore?
I simply fail to understand what the fools on Wall Street are celebrating or are they just plain delusional?
If they keep driving the markets up but with no real economic recovery and the economy continues to be destroyed by socialism then the media will keep focusing on the DOW and the markets and lie to the public that there is an economic recovery due to Obama socialism, where in reality the economy is being destroyed and Wall Street is just pushing a fake rally based on a bad economy. The public will believe that Obama and his socialism is working great and they will encourage him and his socialist to further increase socialism until we reach the point of total collapse of our economy.
what goes up must come down.
same here I was wondering the same
all the bad news and then we have all the news from N Korea and the market goes up, something sounds fishy here and I wonder if Soros and his cronies are doing their old tricks on the market again
Just before the election the market goes down and we had better times, Obama drops his budget and there is much worse news and the market goes up
For the first time in my life I have never seen the market go up with bad news
another thing a report comes out saying housing sales up and yet foreclosures are up and more people lost their jobs
that doesn’;t make sense either
The market is showing us that it really doesn't care anymore what Zero and his running dogs have to say. People are making money. Ideology does not drive the market, profit does.
And people have found ways to make money and invest in good busineeses IN SPITE of Obama.That is the message. And rest assured that the Obamatrons do not like THAT one little bit.
Why?
Because the "investor class," newly defined by Zero is alive and well and does not take Zero very seriously at all.
I’m convinced the market is rigged, not sure if I will ever get back in. I think it was rigged when all heck broke loose last fall as the market dived just at the most opportune time for BHO, and I think it is now rigged to go back up now that once again it benefits BHO. Who’s doing it and where is the money coming from? Don’t have a clue. But with all the fundamentals in disarray like you listed above, there is no reason for the market to go up right now. I’m staying out.
inflation. you better get in the market now or your savings will be worth very little soon. or make big purchases now.
More corporate entitlement welfare spending has been announced, and a round of fresh regulations are forthcoming. These regulations may burden all players, but the cost of compliance as a ratio of the total operating expenses is negligible for large corporations, and crippling for small companies - established players always want more barriers put up to prevent upstart competition from undercutting them (termed Regulatory Capture). The markets reacted favorably also in 1930’s Germany to similar economic prescriptions.
This is not socialism, this is fascism. The beauty of a truly free-market is that the corporatist impulses of large private entities will not be substantiated. Such can only be accomplished at gunpoint, via the confiscatory, regulatory, and inflationary policies of a central government (or collection of governments).
The most likely reason is that the market undervalued itself in the massive dive during Jan and Feb.
By definition, markets tend to over-react on both the up and down sides. We saw the up side in 06 and 07. We may have seen the over-reaction on the down side over the last six months.
Until there is a stable system in which to invest, the market is uninvestible.
It is felt that we have passed the bottom. Probably some bumps ahead, but it could be that we are turning it around.
A) “mark to market” accounting rules have been relaxed. The toxic stuff is no longer counted as toxic as it was a couple weeks ago.
B)The market is always forward looking. There’s optimism in the recovery plan.
C)It’s no longer just an American market. It’s international in scope. Every corp on the Dow does business in Europe, Asia, etc. And many of their economies are not as bad off as our economy. Note: I said “many” and not “all.”
Just setting investors up for the kill.
Most of Wall Street is Liberal Globalist Socialist...so no surprise that they are in near lock-step, goose-step with Obama
Three words: Bear Market Rally
And people have found ways to make money and invest in good busineeses IN SPITE of Obama.That is the message. And rest assured that the Obamatrons do not like THAT one little bit.
Why?
Because the "investor class," newly defined by Zero is alive and well and does not take Zero very seriously at all.
Good Point.
Well Said.
Wall Street is driven by two emotions: fear and greed. (I can’t remember who originally said that). It is currently rebounding from an excess of fear, but I think it’s a bear market rally. The next few years look bad for stocks. If the Reps grow some brass ones and rebound in 2010, then we will be in better shape.
Personally, I like it better when markets operate on greed. That means there are opportunities out there. Of course that is what the Dems want to control. The want a world where we cannot live without them. It “worked” in Europe.
“Greed is good”. -Gordon Gecko
I’d say a fair number of people are still dutifully contributing monthly to their 401K plan, which explains some of it. Behind the scenes government intervention explains some more of it.
I read a short story nearly a year ago, fiction or seemingly so at the time, dystopian near future stuff, describing zombie companies, tottering along on shoestring, bankrupt really, but still keeping appearances, barely, with employees who hadn’t been paid in months, still coming in, hoping to get paid, not willing to admit reality.
Delusion dies hard, was my takeaway as far as the moral of the story.
Is that like a suckers rally?
Hi jveritas.
The market is made up of millions of investors. The majority of investors are feeling a certain way right now. That may change next week. But for now:
They think the market was oversold at 6550 on the DOW.
They think that 9 months from now earnings will have started to improve.
They understand that unemployment figures are a lagging indicator.
They like the changes in the mark to market issue.
They think that the govt stimulus will have a positive though temporary effect.
As I wrote above, that feeling could change very soon. That is today’s snapshot.
No one should be surprised by any of this, the markets are famous for fooling experts, let alone non-experts.
Tow cases in point: Many self-styled experts here have been screaming for over a year that the dollar is collapsing, or will collapse any minute. Over the last 12 months the dollar is up against the EURO by 13.5%.
Many self-styled experts here have been screaming that gold is the thing to own, and is set to skyrocket over $2,000 an ounce. Gold has gone from over $1,000 an ounce to $681 and back over $1,000 an ounce, and now to around $900 in the space of about 6 months. Where is it going next? No one knows.
The lesson is: Make your bets, but realize that you are gambling and you have little or no clue how your investment will behave in near, medium or far future.
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