DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Just a brief comment:
ReplyDeleteI keep hearing people say, "Why is the market doing so well, if Obama is so bad?"
My response:
"That's because of Bush, too"
1:29 market isn't really doing well at all. It's being propped up by the feds by quantitative easing (printing more money.) The reasoning is if investors are making money they will spend more which stimulates the economy.
ReplyDeleteProblem is after QE1 and QE2 this spending more and stimulating economy has not worked (more failed obama policy.) We are now on QE3. Even if spending did increase it is a short term fix which in the long range causes problems. Pension funds are going to be hit hard by this and if I was relying on one I would be very very nervous because most likely people are not going to get anywhere near what they think they are.
Another thing with this supposed great stock market is the market can not rise disproportionately with wages. They must both rise together and that has not happened. To make matters even worse wages have fallen. We are going to see a financial collapse like never before-not "if" but it "will" happen if this keeps up. Savvy investors are pulling money out of the market and pocketing it, buying foreign currency or depositing it in foreign banks in stable countries (which contrary to popular belief it must be reported on taxes and you still pay US taxes on it.)
ReplyDeleteThanks, 222, you are right. Increasing the quantity of money makes the stocks change in value, some early, some later. the game is to do the timing right to make the best money out of the price changes, hence the wonderful activity in the stock market.
ReplyDeleteWhat that means for you and I though, is different. The number of dollars has been increased, but the amount of "stuff" still remains the same. Same amount of gold, corn, trivets, coca cola, newspapers, cars, peanuts, hotels, everything.
So, there are more dollars available, but not more stuff, That means your 100k house is not worth 100k anymore. If 20% (they never reveal the amount to us) more money is printed, then roughly your house is now only worth 80k, so you are underwater, but the stock geeks are making money off this. You, however are paying interest on 100k and your credit rating is in the pits because you are underwater through NO fault of your own.
This is what's known as "economic stimulus"
It's a lot like when you go to prison and receive "anal stimulus"
Capiche?
Yep, I get it 5:55. Unfortunately 47% of the voters do not get it.
ReplyDelete