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

    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

    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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    This I tell you brother
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    Gold and Silver , Gold and Silver
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    Gold and Silver , Gold and Silver ,
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    Dad was told by mother
    You can't have one without the other.

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