Posted on 04/12/2010 2:02:15 PM PDT by NormsRevenge
NEW YORK – The Dow Jones industrial average has closed above 11,000 for the first time in a year and a half on investors' rising hopes about the economy.
The Dow edged up about 9 points Monday to almost 11,006. The Standard & Poor's 500 index came within a point of hitting its own milestone of 1,200 during trading but closed just short of that mark.
A loan agreement for Greece allowed U.S. investors to focus on domestic economic and corporate news, including announcements of two big deals.
European leaders agreed over the weekend to make loans available to Greece to help the country lower its public debt burden. The 16 countries that use the euro agreed to provide $40.5 billion in loans to Greece if needed. The International Monetary Fund could contribute another $13.5 billion.
(Excerpt) Read more at news.yahoo.com ...
I should be getting started again later this week...
FASB (Federal Accounting Standards Board) just implemented two new rule changes. This made it "appear" that our M2 money supply had increased by over $400 billion towards the end of March.
Precious metals investors have misread this as an inflationary sign - but in reality it means no such thing.
Gold and silver will be dropping in price from their current levels in the months ahead.
Folks need to understand that it is deflation we are staring at - not inflation - and DEFINITELY not hyperinflation.
So with deflation isn’t it less likely we can pay the interest on our debt and the principle on the bonds as they reach maturity?
I thought that the only hope (what a stupid use of the word) of paying this down was vastly inflation impacting our ability to pay.
That's EXACTLY correct!
That's what most people don't understand. The Fed and the Federal government are at polar opposites - not working hand-in-hand as most people think.
The Fed is just an organization acting as an interface between the international banks and the Federal government, but is completely controlled by the banks.
The bankers have shut off the "credit valve" to every developed nation in the world. "Credit" is the same as "money" in our M2 money supply.
Massive credit defaults are causing massive monetary destruction. The Federal government has been trying to alleviate this by creating new debt (money) as fast as it can. They can't do it fast enough by themselves, so they are trying to get the public to help them by offering "cash for clunkers", "first-time homebuyers", etc.
The Federal government is a dying patient - and will remain that way unti the bankers decide to open up the "credit valve" again. I don't expect that to happen for another 8 or 9 years at the earliest, based on history.
Crash is imminent imo - DOW 6000-7000 appears likely. If you missed this rally then now is not the time to get in.
“European leaders agreed over the weekend to make loans available to Greece to help the country lower its public debt burden. The 16 countries that use the euro agreed to provide $40.5 billion in loans to Greece if needed. The International Monetary Fund could contribute another $13.5 billion.”
What will happen when the other parts of USPIGS start to default...hold onto your hats folks. There aint enough money in the world to bail all of us out...
“There aint enough money in the world to bail all of us out...”
Nor enough debt facilitations in the world...at some point reality will collapse this debt laden House of Cards.
Still waiting for the Dow to hit 13,000 when I sold off most of our stocks and stock funds in out 401(k) plans (transferred to other assets). Have gained a bit over 14% since, meaning the Dow needs to hit 15,000 to catch up to where we are at (assuming our current investment goes flat - not likely).
Don't agree. The likelihood of a GOP win in the congressional elections will have a soothing effect as we head toward November.
and the money is worth what???
We think along similar lines. I see deflation, and I see it lasting for 5-7 years. I predict the DOW sees 7,500 before it breaks 12,000. I have been slowly taking money out of the stock market and am quite light now.
Nat gas about the only thing that looks interesting right now. I may be prejudiced there as I am collecting royalties. The ratio of oil to nat gas price looks favorable for nat gas.
You know, the DOW is just another poll. They don’t even pay attention to it (when it’s down.)
When it’s up, they’re happy to take credit. :)
F....K!
HA!
Get in with what? ha. My retirement tanked on the last go around...I switched over everything to a straight money market...then today I saw the DOW and said to myself”YOU idiot! you should have left it in the index...”
then I get on freep...and now I feel better.
(I know. I know ...why would I listen to you guys when I can get such stellar financial advice as I have in the past from all the financial gurus: Diversify, index funds, blah, blah, blah!..what a joke.....rather be on here.)
All in the name of Nat’l security and the PPT
As soon as we gain another 1400 points we will be back where we were when Pelosi/Reid took control of Congress.
BINGO! We have a winner.
Not for National Security but for DNC re-election campaigns.
People who got in when the market crashed have made a killing. You got have bought GE in the single digits! Ford the same. Microsoft in the teens. All those stocks have double - tripled - or more.
DOW 5000-6000 would be a mega-buying opportunity.
If you are in this manipulated market get out now. The Fed is pumping up this market through its puppet brokers ( JP Morgan —Bear Stearn) . They are using printed money and buying selected Dow and NASDAQ components stocks and trying to stabilize the sinking ship. They go through brokers who don’t have a clue and using nominal large institutions as buyers to manipulate the market.
“Crash is imminent imo - DOW 6000-7000 appears likely. If you missed this rally then now is not the time to get in.”
Low volume of trading? Bad price to earnings ratios? What do you see?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.