I guesss it's over

Discussion in 'Economics' started by stock_trad3r, Apr 5, 2009.

  1. by printing 2 or three trillion dollars the and bailout the banks the recession and crisis is pretty much over

it's all upside for another 5-10 years 

Paul Krugman was wrong. You can inflate your way to prosperity. printing money does work. 

  2. Sure, nominally it will increase securities prices, but, in real terms, we're much worse off.
  3. yea but with goog aapl ma and other stocks surging 20% in a month that beats inflation by a huge margin. Stocks will outperform all other asset classes.
  4. A stock gaining 20% is not as big a move as a stock losing 20%.

    Percentages are relative.

but buying now and having the stock move up 20% is money in the bank. That's equal to 5 + years of compounded inflation. 

  6. lrm21


    I though it was over in September with Tarp 1, it was the same deal. Gov backstopped everything..and yet.

    Having the market move up for 1 month after 6 months of straight declines is no indication of anything.

    We are entering the next phase of this crisis where it stops being a financial crisis and it becomes a political crisis.

    All the liabilities of the USA are now on the government books. They can print all the dollars, fire the CEOs, buy calls on the S&P, but that is not going to build prosperity.

But that was a pretty big month though.

A few more like this and all the losses will be erased. The market looks waaaaay ahead and sees a strong recovery down the road.
  8. Historic precedence for the (never tried before, ha) handling of the US economy.
    Excerpt from Wikipedia
    Wikipedia Topic ???

    "The 1920s [country] inflation started when [country] had no goods with which to trade. The government printed money to deal with the crisis; this allowed [country] to pay war loans and reparations with worthless [currency] and helped formerly great industrialists to pay back their own loans. This also led to pay raises for workers and for businessmen who wanted to profit from it. Circulation of money rocketed, and soon the [country] discovered their money was worthless. The value of the [currency] had declined from 4.2 per US dollar at the outbreak of World War I to 1 million per US dollar by August 1923."

    What country was it?
    What Wikipedia topic?
  9. What about an index losing 90% in a few months?
    How is that money in the bank?
    #10     Apr 5, 2009