"Stupid Stimulus" Courts Disaster We are 'stimulus skeptics' through and through, not for moral reasons but simple logistical ones. Simply put, historical evidence suggests that, the majority of the time, stimulus is a form of malinvestment. (Malinvestment is an Austrian economics term, referring to capital that has been invested or allocated badly.) Basically, when you try to juice the economy through artificial means, driven through artificial government channels, the guiding hand of the free market is negated... Read full notes here
Intraday ES pop on another hint of a whisper of a shadow of a smell of a fart from Bernanke's ass, via official Fed leaker Hilsenrath http://online.wsj.com/article/SB100...9231770784446.html?mod=WSJ_hps_LEFTTopStories All in the game, as Omar Little would say, but I swear this market is retarded
Nice fadeback on a nice little nothing rally into the close... worst volume of year so far... Aussie weakness still confirming... minor boost will set up some more short opps for Mon http://www.zerohedge.com/news/30-minutes-go-nyse-volume-run-rate-hits-low-year
First off, "Indeed". Secondly, (don't shoot me) in the words of Jim Cramer (I pick and choose, bear with me), it's all about expectations. Wal-Mart's stock dropped something like 3.5% the most recent quarter because it beat expectations, because it wad EXPECTED to beat expectations. Same thing happened with CVS Caremark, they posted a perfectly well and good (relatively) quarter with solid numbers, since low priced commodity retail (soap, cigarettes etc.) were expected to do well, stock went fron $45 to $41 and change, because nothing spectacular or out of the ordinary happened. Thry expected an on par or mild beat on estimates, so since nothing spectacular happened, people took their money elsewhere looking for a pop. The point I'm leading up to as has been much discussed is that this rally has no legs, for lack of better term I've been calling it a stimulus bubble.
What I was getting at before I spaced out was that all the positives are priced in, how many negatives are priced in right now? Given the expectations of QE3, if Bernanke does anything short of buy mounds of mortgage bonds and more Treasuries, that will not meet expectations and dissappoint. Anyone older and wiser chime in, I'm in my first year of trading.
what about inflation too? Oil is very high, food is high, taxes are increasing. Cost of living is rising and average income is falling, it'd be detrimental to keep inflafing the money.
Tell us how you really feel. I thought inflation was the way to mitigate our debt payment by paying it off in cheaper dollars over time. Who is kidding who ? As our currency goes down in value, our souls we owe to the company store ( Can you spell C-h-i-n-a ? ) will have the management there raise the yield requirement on U.S. issued bonds to compensate for the cheaper dollar. For you who are living in the U.S., you get to pay more of those cheaper dollars than you currently do to the treasury to help it pay the rising debt service to that store. It will also cost you more in the cheaper dollars to buy imported products we rely on that we don't manufacture anymore and also for assorted commodities we rely on. That includes more for oil as it will take more cheaper dollars to pay for that imported commodity. I am an economic animal, not a political animal, but each candidate has drawn a line in the sand....the President who has made clear by manner of his track record and statements what he thinks about fossil fuels and has had his boot on the neck of our domestic energy production in that area since coming in office....oil, coal, natural gas......and Romney who said he will reverse everything (get the boot off that sector's neck and help it rise again). Should Romney get elected, I am expecting one HELL OF A BOOM in domestic energy production for MANY YEARS with natural gas production dwarfing anything it has ever been in the past (and it will be cheap) and attracting the oil extractors back into drilling that Obama chased out of the Gulf and elsewhere. The new technology in deep water drilling will create a hell of a boom in that industry, too. We will be so awash with energy for so many years, it will be the one relief in our economy that should create at least some ripples of hope in oil dependent sectors (transportation and what little manufacturing still exists in this country, and perhaps be a catalyst to allow new ones to be born). Those many years may be the necessary bridge for furthering technological evolutions into alternative energy sources. I post this for you kjones to give you some relief from your agony. My general sense, however, kjones, is that it does not make any difference if even a new president and administration does everything more right than an army of fairy godmothers. It is clear from the economics I have read for the last 7 years-- and especially now-- that should such a nice change in status occur, it will only slow the inevitable, continuing slide of degradation of quality of life (and security) in USA. The lucky ones will be the older of the baby boomers that may check out of planet earth before the meek behind them--the younger generations who were assigned that condition by leadership and those that voted that leadership into office--will inherit a very sad earth, that part of it called the USA. IMHO, the USA has crossed the Rubicon, never to be able to get back on the right side of the equation again. So from a relative perspective, enjoy your current condition you are complaining about kjones. Except for some relief from an energy boom (should there not be a government that squashes it), you are currently living the high life compared to what comes afterwards.
The Natural gas boom situation I've said verbatim myself, couldn't agree more. That would be such a gigantic industrial boom with lasting capacity, not like the Chinese cheap labor that has too much capacity now. How I really feel, I'm not sure how old you are but I'm in the generation who will inherit that mess or whatever it amounts to. It grinds my gears man I tell you, to have my future prospects shat on by idiots that got voted in by baby boomers, affirmative action, and illegal immigrants. The blind leading the blind. If Romney wins this election I'm going to be one happy bastard. I don't even like Romney particularly, just...Obama went to Harvard and is still a moron, that's bad PR. Rant over.