Higher expected stock prices built into gov't financial models. Stocks 2 ease crisis

Discussion in 'Economics' started by wilburbear, May 22, 2010.

  1. pitz


    Sure. If the government can pump the Dow up to 50,000, then much of the demand that's been lost from the housing collapse, will be replaced by demand from stockowners. Stockowners, who have seen their stocks stagnate in price, and only go down in terms of commodities, etc., over the past decade, could start going on shopping sprees again.

    High P/E ratios would make starting new businesses and IPO'ing them into the market attractive.

    Makes perfect sense. Because of rampant overcapacity, it certainly won't be housing that pulls us out of this recession/depression. Nor will it be bonds. Some sector, some asset class, will eventually emerge with leadership.
  2. rew


    All government fiscal projections are based on fantasy, inevitably of the over optimistic kind. That why so many state pension systems are now in a deep, dark hole.
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    Go together like a horse and carriage
    This I tell you brother
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    Gold and Silver , Gold and Silver
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    Ask the local Federal Reserve
    And they will say it's elementary

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    Try, try, try, and you will only come
    To this conclusion!!

    Gold and Silver , Gold and Silver ,
    Go together like a horse and carriage
    Dad was told by mother
    You can't have one without the other.

    Don't trust the fed and buy Gold & Silver, Gold & Silver
    or they will inflate you till your broke.
    This I tell your brother is not a joke.

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