Posted on 10/11/2010 7:16:03 AM PDT by blam
Obama had a half trillion to still spend...
Is there some stock propping up taking place?
Soros $$$
I heard a market analyst (on Fox Biz?) saying markets LOVE gridlock in DC. They also are primarily predictive of market conditions rather than reactive. The markets are making a run based on their anticipation of the oncoming Republican onslaught on November 2.
This isn’t really surprising. Companies have saved a ton of money by firing people and making whoever is left do more at the same pay. All of this cost cutting translates into profit.
Exactly what I suspect.
I think the markets love being out of fiat currency, and into anything that isn’t fiat currency.
"In my nearly 30 years of playing Ms. Market's game, I've definitely seen periods of time when bad news is good news for the stock market and vice versa. But rarely has there been an environment where both good and bad news is good for stocks (well, okay, as long as the good news isn't TOO good, that is). So, while I don't have to like it, it appears that Goldilocks has returned to the corner of Broad and Wall."
Not really. The truth is quite a bit worse than that.
The Federal Reserve is intentionally devaluing the dollar, monetizing the Federal debt and holding interest rates at historically low levels. The result is a flow of investment capital into equities and commodities, driving their prices up. Declared corporate earnings are up because they are (a) employing fewer people at lower real wages and (b) choosing to bank earnings now rather than next year when tax rates on capital gains and dividends are set to skyrocket. Meanwhile, the investment banks doing most of the stock trading (on some days, 60% of market volume is attributable to five or six entities) have been allowed to maintain as assets mortgage-backed securities whose valuations are fraudulent and whose liquidity is nil.
So if we score big in November, will Soros pull the plug on the markets?
How does that project the markets to year end? Any speculation?
“Republican Rally”.
Markets are anticipating GOP gains next month.
The bigger they are the harder they fall comes to mind
This is the kind of market behavior you get before a once or twice a century magnitude crash.
its simply inflation. Zimbawae have the best performing stockmarket
It's all speculation. That's the point. Market fundamentals mean nothing. The next phase will be another round of "quantitative easing" by the Fed, meaning a direct injection of liquidity (artificially-created credit) into the markets.
The likely result will be a continuing boom in equities (and in commodity prices) regardless of underlying fundamentals; long-term unemployment will increase and consumer demand will languish, until... the game will be up.
My guess: government stimulus will no longer have any effect as credit gets sopped up by the banks and held in reserve against mounting default risks. Our declining currency will force a decoupling of the dollar from international trade. We are becoming Japan - only worse; our savings rate is lower and our debt is astronomically higher. The market will begin a slow decline into an abyss from which recovery will take a generation.
nah, using this argument will only backfire, because its going to get ALOT worst, even after gop win nov 2. Remember the $4 trillion tax increase is coming up and gop can’t do anything to stop it. Look at the dollar index. Its now at 77. The USD is losing value, thats why all prices is going up
Gold. And Lead.
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