The DJIA closed down 206 points.
The DJIA closed down 206 points.
So whats this mean?
Obama has borrowed and spent trillions of dollars and Bernacke has printed trillions more. Almost none has gone into capital investments. Obama and Bernacke have not created wealth but hollowed out the economy. The standard of living for most Americans has declined and prospects are not good. These two men have done more harm to America than anyone who has ever lived.
Yeah I saw gold taking a pretty big hit.
It means there will be a BIG rise in mortgage rates and a mad dash to buy homes.
IMHO 6.5% unemployment is a bit optimistic in the face of the rollout of obamacare. Unless the new employment paradigm for the BLS will consider 20hrs/week as a full time employment.
Lately, the rule seems to be that if the DOW falls 206 points on the day of a Fed announcement, the following day it will turn around and rise 206 points.
The crash will come when the sellers have the courage of their convictions and keep selling. Fortunately, that hasn’t happened yet. But tomorrow is another day.
Wow, you take away a little bit of an addict’s crack and they freak out.
Damn the pusher man.
Funny - dropped 120 points while he was talking - I would have loved to have been one of the journalists questioning him with the dig “The Dow is down 100 points since you started to speak - what do you think you said that resulted in this?”.....
The markets reacted to Bernanke as follows:
Stocks DOWN
Bonds DOWN Rates UP
Dollar UP
Gold DOWN
Oil DOWN
Can anyone explain why?
My theory is that if the market thought that Bernanke would:
(A)continue to print, then:
Stocks UP
Bonds DOWN Rates UP
Dollar DOWN
Gold UP
Oil UP
or (B) taper, then:
Stocks DOWN
Bonds UP Rates DOWN
Dollar UP
Gold DOWN
Oil DOWN
So the market must think Bernanke will taper. As for Bonds, the short-term removal of demand for bonds is more important than the long-term inflation implications.
Do I have that right?
Goldbug ping.
Silver is also on sale.