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And We're Back! Dow 14,000 Fuels a New Wealth Boom
CNBC ^ | Friday, 1 Feb 2013 | Robert Frank

Posted on 02/01/2013 3:13:45 PM PST by Mrs. Frogjerk

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To: Mrs. Frogjerk
virtuous cycle of confidence

The author is parroting the socialist meme.

The "virtuous cycle" is a statist concept, originating in Europe and adopted by Bernanke, postulating that government intervention in the economy can create a virtuous cycle of improved economic performance. In a speech given before he became Chairmen, Bernanke adopted the concept and suggested that the Fed could directly cause an increase in equity prices. It is widely speculated that Bernanke has been implementing this intervention in the equity markets through the New York Fed.

This Fed action is already a failure, merely causing equity prices to disconnect from the performance of the balance of the economy.

41 posted on 02/01/2013 8:04:19 PM PST by Praxeologue
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To: Kennard

It makes sense that in the short term balance sheets will look better as companies layoff employees ahead of poor sales projections.


42 posted on 02/01/2013 9:45:58 PM PST by willyd (Don't shoot, we're Republicans!)
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To: Mrs. Frogjerk

The DOW is p .8% since I moved my assets into Money market accou8nts to preserve the value vs. worrying about it growing/disappearing. I believe that if I leave it where it is, in 9 months or less, I’ll be much better off due to not losing my shirt (again) when it crashes.


43 posted on 02/02/2013 4:20:01 AM PST by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: Mrs. Frogjerk
It's different this time™

Bump

44 posted on 02/02/2013 4:26:02 AM PST by central_va ( I won't be reconstructed and I do not give a damn.)
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To: Mrs. Frogjerk

The guys who trade stocks know as much about the economy as the players in the World Series of Poker. Proof? On the very day - in fact in response to - the latest “good news” jobs report including a Central Committee admission that there are 8.5 million few Americans working now than when the Kenyan came in, the DJ hits a record high. All they care about or know about is what the guy in the next chair is doing or not doing. I have a friend just like this. He makes money on the market by studying trends in trading. He actually told me he believes the economy is turning up! College grad as well!


45 posted on 02/02/2013 6:24:48 AM PST by jmaroneps37 (Conservatism is truth. Liberalism is lies.)
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To: clearcarbon

Right now, a dollar is worth about .741 cents. I don’t know what it was in 2007.


46 posted on 02/02/2013 7:02:51 AM PST by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin
‘paper wealth’ Most important two words in that entire piece!

The word not mentioned at all: inflation.

$10,000 today won't buy you what $10,000 bought earlier. When they say the market it back up to where it was before - it isn't.

47 posted on 02/02/2013 7:55:26 AM PST by ladyjane (For the first time in my life I am not proud of my country.)
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To: Mrs. Frogjerk

Nothing to do with the QE4 I’m sure.


48 posted on 02/02/2013 8:00:56 AM PST by Sirius Lee (All that is required for evil to advance is for government to do "something")
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To: Mrs. Frogjerk

Nothing to do with the QE4 I’m sure.


49 posted on 02/02/2013 8:01:05 AM PST by Sirius Lee (All that is required for evil to advance is for government to do "something")
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To: Diana in Wisconsin

Diana, from your posts, I conclude you are _far_ from simple.

But country girls will survive!


50 posted on 02/02/2013 12:05:04 PM PST by reformedliberal
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