Posted on 07/28/2012 4:08:18 PM PDT by SeekAndFind
The latest economic data released Thursday confirms what all Americans, especially business owners, already knew. Economic growth has slowed down to a measly 1.5% (from 2% the previous quarter), job growth continues to languish with nationwide unemployment at a dismal 8.2%, consumer confidence has fallen to its lowest level this year, and consumer spending is also tanking. Household purchases, which represent approximately 70% of GDP, grew at the slowest pace in a year. Recent surveys show that Americans have lost approximately 40% of their net worth in the last few years, and poverty rates are reaching levels not seen in this country since the 1960s.
So, why are the markets up? Everything confirms that our bleak economic situation just got worse. Obama's anti-business, anti-job growth, and punitive taxation schemes have not changed. The administration's stifling and oppressive regulatory policies continue unabated. The European situation has not improved or stabilized much, despite repeated assurances from the European Central Bank. The Federal Reserve in the United States is already out of options, despite speculation from the so-called financial "experts" who believe that another round of "stimulus" may occur, even though the Fed signaled just the opposite last week. Given the poor record of previous easing and the near-zero interest rates, there is very little the Fed can do now.
So what could possibly have influenced the financial markets to push the Dow Jones, S&P 500, and Nasdaq averages into solid positive gains for the day?
(Excerpt) Read more at americanthinker.com ...
It’s just inflation at work. Why wouldn’t the price of stocks go up just like everything else?
Agree.
Returns on bonds are pathetically low, so they put the money into the stock market. For some, if they don’t play the game (i.e. invest) they don’t get to collect fees.
That is a GRAAT inteview
Stockman is a really interesting guy, amazing to hear stuff like this coming from a former OMB Director:
Quote:
TGR: Finally, what is your investment model?
DS: My investing model is ABCD: Anything Bernanke Cannot Destroy: flashlight batteries, canned beans, bottled water, gold, a cabin in the mountains.
TGR: Thank you very much.
End Quote
Quote:
TGR: Finally, what is your investment model?
DS: My investing model is ABCD: Anything Bernanke Cannot Destroy: flashlight batteries, canned beans, bottled water, gold, a cabin in the mountains.
TGR: Thank you very much.
End Quote
People who already needed the money have sold to get the money have done so. Buyers now are seeking a hedge against inflation in the form of stocks that increase in value if there is inflation or inflate both in valuation and dividends with hyperinflation.
... Because the US is the “best of the worst” places to invest. EU and BRIC’s are a mess.
Qualitative easing and government loans here and in Europe drive the markets. Just the promise of support will send the market soaring out of a slump.
My opinion is that a lot of investors are doing the only thing they know how to do, and there is little or no economic reason behind it. What made the markets drop for several days, and what made it shoot back up? Greece disappointed the market, and the Fed made promises, like a drug addict and his pusher. ...Don’t look now, but the Ayn Rand disciples in the market morphed into fascist as soon as their corruption caught up to them.
RE: As the markets tanked at the end of ‘08 in anticipation of an Obama presidency, so they are rallying this year in anticipation of a President Romney.
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REALLY? How to explain this site ( where traders put REAL MONEY into how events will turn out ):
http://www.intrade.com/v4/home/
Barack Obama to be re-elected President in 2012
57.0% CHANCE
Last prediction was: $5.70 / share
Today’s Change: +$0.01 (+0.2%)
I just watch the price of oil. Up again to almost $90 last time I looked. Not good.
“Bernanke is propping up the market.”
Ding, ding. We have a winner. Where do you suppose that trillion dollars of TARP money is that no one knows where it went? I watch the stock market; sure, it goes up and down a little, but in the big scheme of things it looks as solid as a rock. There’s no way the stock market naturally goes up upon release of news of 1.5% growth.
The markets have been decoupled from economic reality since 2008.
.....USA is the best horse in the glue factory.
The worse things get, the more likely we are to be rid of Obama in the fall.....
It’s European money trying to get out of the 75% tax bracket.
Why on earth would I consider Intrade the only reliable indicator?
Quick hits
Every one percentage point drop in Obama’s standing in the polls equals a 5 percent increase of the Dow and 10 percent on Nasdaq. Take it to the bank.
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