Gun to the head. The markets are going to do eactly what the SSEC or Chinese stock market did in august sometime very soon.
The house of cards economy was built upon purchase accounting and consumer leverage. It's a fraud that's been perpetrated for 30-years. Anyone who tells you they are bullish on the economy is simply trying to sell you something.
The cash on the sidelines IMO is a myth. It's pure B.S. bandied about by long-only fund managers. You should know that these guys are just like realtors, the market is always going to go up . Baby boomers are going to retire in the next few years and they will take their money, others will not touch the market again. This stockmarket in uninvestable, untradable . The reason it's going UP is short covering , this is not a bull market and this is not a bear market rally either it' s something else , it's called B.S from the government. They created the crash with the bailout announcement and they are creating the reverse crash with 0% interest rates, that allows everybody to be leveraged to the hilt for free. The market is going to correct from the current levels or a little higher although it could take forever and probably it will go higher eventually then crash again. Now stop posting bearish stuff, it serves no purpose. Probably makes it worse.
Yes, two things here: 1) Immense amounts of stimulus money from the government - that is what pushed this recovery. the economy is much better today, but eventually the stimulus has to be cut, and then the economy will weaken for sure 2) Very high, stubborn unemployment - and the consequent much lower consumer spending, and more (many more) foreclosures These 2 factors will make our SPX to have a fair value of about 850. All the rest is just euphoria. It will melt down for sure and get back to "reality" levels (the spx, that is).
Wait till you wake up one morning and see the dollar collapsing, im sure the permabulls will like this one, this market is EXTREMELY irrational at the moment and when markets behave like this something ALWAYS gives. Bet everyone here cant wait for hyper inflation. Going to be fun, fun, fun.
also agree that OP might consider to stop posting the crap - especially when he consistently copies (data-mined) articles without providing any original thoughts of his own. p.s. pabst, this thing with mvic borders on paranoid... looks like you need to square the book and go fishing for few days...
Agree, however do you honestly think bernanke is going to shut down the monopoly money printing press anytime soon, they know the only way to keep things going is with stimulus, take away the stimulus and forget about what would happen to this economy. I really think the dollar is going to collapse with all this stimulus, the economy can only handle so much before it breaks, and its going to break again just like it did last time. The only way to grow our economy is through asset bubbles and that's whats being done at this very damn second. All they know how to do is print the economy out of the recession, of course everyone believes this is the best thing they can do but when the currency crisis touches down on the entire global market it will certainly be a wake up call.