Here Is Why The Dow Just Passed 13,000

User avatar
kramer
Posts: 8852
Joined: Mon Nov 19, 2007 8:38 pm

Here Is Why The Dow Just Passed 13,000

Postby kramer » Thu Mar 01, 2012 11:12 am

Wondering why the DJIA just passed 13K again? Wonder no more: as the chart below shows it is entirely due to the nearly $7 trillion pumped by global central banks into the world stock markets just in the past 4 years. As Sean Corrigan from Diapason notes, the aggregate global central bank balance sheet has doubled in four years, after doubling in the 5 years before that. We would add that with the entire centrally planned ponzi scheme hell bent on preserving the illusion of nominal gains, global liquidity is now fungibly sloshing from one market to another with absolutely zero resistance whatsoever. At this rate, it should double again in 3 years, then 2, and so on. Will the Dow hit 52K in 5 years in that case? Why most certainly. Just ask any remaining citizens of the Weimar Republic. They know all too well about exponential stock market rises. They also know absolutely everything about the self-delusion that comes with chasing NOMINAL numbers. Oh, and before we forget, expressed in spot gold price, the central bank aggregate tally has moved from being the equivalent of 10 billion oz of gold, to just 8 billion. Guess what is 20% underpriced.

http://www.zerohedge.com/news/here-why- ... ssed-13000



In short, central banks are printing money and this worthless paper is pumping up the stock markets fooling the ignoratii (the public that gets its news from the MSM) into thinking the economy is good so they'll spend their money.


“We should have been warned by the CFC/ozone affair because the corruption of science in that was so bad that something like 80% of the measurements being made during that time were either faked, or incompetently done.”

- Scientist James Lovelock

User avatar
GOODave
Posts: 26392
Joined: Sun Oct 15, 2006 6:21 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby GOODave » Thu Mar 01, 2012 11:52 am

kramer wrote:

In short, central banks are printing money and this worthless paper is pumping up the stock markets fooling the ignoratii (the public that gets its news from the MSM) into thinking the economy is good so they'll spend their money.

It is odd that a few of us have been saying this very thing for a long time but many here will still ignore it.

User avatar
kramer
Posts: 8852
Joined: Mon Nov 19, 2007 8:38 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby kramer » Fri Jan 25, 2013 4:32 pm

Elroy El bump...
“We should have been warned by the CFC/ozone affair because the corruption of science in that was so bad that something like 80% of the measurements being made during that time were either faked, or incompetently done.”

- Scientist James Lovelock

User avatar
Parrotpaul
Posts: 33550
Joined: Sun Oct 15, 2006 2:14 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby Parrotpaul » Fri Jan 25, 2013 4:57 pm

You're just pissed you are still sitting on your retirement cash in that barrel you sit on when you do your part-time engineering ( :mrgreen:)....the trend is your friend, kramer...you may have just missed a great rally...not to worry...there should be a 10% correction sometime in the next couple months you can get on board then...have you noticed corporate profits lately? Not bad for a sucky economy.
"I think I may say that of all the men we meet with, nine parts of ten are what they are, good or evil, useful or not, by their education." John Locke

User avatar
Wabash
Posts: 23925
Joined: Wed Jan 26, 2011 7:29 am

Re: Here Is Why The Dow Just Passed 13,000

Postby Wabash » Sat Jan 26, 2013 6:35 am

Parrotpaul wrote:You're just pissed you are still sitting on your retirement cash in that barrel you sit on when you do your part-time engineering ( :mrgreen:)....the trend is your friend, kramer...you may have just missed a great rally...not to worry...there should be a 10% correction sometime in the next couple months you can get on board then...have you noticed corporate profits lately? Not bad for a sucky economy.

In addition to the fact that corporations are sitting on record amounts of cash.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

User avatar
Troglodyte
Posts: 16607
Joined: Mon Nov 26, 2007 4:33 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby Troglodyte » Sat Jan 26, 2013 9:26 am

Wabash wrote:In addition to the fact that corporations are sitting on record amounts of cash.

You think that might be part of the reason for the runup??? DUH!!!
And why the piles of cash?? Team Obama keeps the companies guessing what other kind of BS is gonna slide down from the hill. Why hire until they know what the employees are gonna cost them, what kind of craziness the bureaucrats are planning to saddle them with, and what their tax load is gonna be.
Team Obama is still hampering the recovery...
I don't suffer from any mental illnesses.. I enjoy them..

User avatar
Parrotpaul
Posts: 33550
Joined: Sun Oct 15, 2006 2:14 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby Parrotpaul » Sat Jan 26, 2013 9:30 am

Troglodyte wrote:Team Obama is still hampering the recovery...

How?
"I think I may say that of all the men we meet with, nine parts of ten are what they are, good or evil, useful or not, by their education." John Locke

User avatar
Wabash
Posts: 23925
Joined: Wed Jan 26, 2011 7:29 am

Re: Here Is Why The Dow Just Passed 13,000

Postby Wabash » Sat Jan 26, 2013 9:58 am

Troglodyte wrote:You think that might be part of the reason for the runup??? DUH!!!
And why the piles of cash??

Because they didn't need to hire anyone due to the productivity of a workforce that is terrified of losing their jobs and knowing there is no alternative.

Troglodyte wrote: Team Obama keeps the companies guessing what other kind of BS is gonna slide down from the hill. Why hire until they know what the employees are gonna cost them, what kind of craziness the bureaucrats are planning to saddle them with, and what their tax load is gonna be.
Team Obama is still hampering the recovery...

Blah blah blah. Business is the new entitlement demographic. They want all the access to the marketplace but believe there should low if any taxes on them and no regulation.

More importantly you just proved that "trickle down" econ doesn't work.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

User avatar
kramer
Posts: 8852
Joined: Mon Nov 19, 2007 8:38 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby kramer » Sat Jan 26, 2013 12:11 pm

Wabash wrote:
More importantly you just proved that "trickle down" econ doesn't work.


And using your 'logic' we can conclude that the reason this 'recovery' under Obama was the worst ever can be traced back to him using trickle down economics.
“We should have been warned by the CFC/ozone affair because the corruption of science in that was so bad that something like 80% of the measurements being made during that time were either faked, or incompetently done.”

- Scientist James Lovelock

User avatar
Parrotpaul
Posts: 33550
Joined: Sun Oct 15, 2006 2:14 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby Parrotpaul » Sat Jan 26, 2013 12:14 pm

Nah...it can probably be traced back to George W. Bush spending unfunded monies like a drunken sailor and spending the country into the state Obama found it when he took over.
"I think I may say that of all the men we meet with, nine parts of ten are what they are, good or evil, useful or not, by their education." John Locke

User avatar
kramer
Posts: 8852
Joined: Mon Nov 19, 2007 8:38 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby kramer » Sat Jan 26, 2013 1:34 pm

Parrotpaul wrote:Nah...it can probably be traced back to George W. Bush spending unfunded monies like a drunken sailor and spending the country into the state Obama found it when he took over.


CAUTION: Reading this may cause the tin foil panties of liberal 'men' to wad up the cracks of their democrats---

The majority of the housing crash blame goes to Clinton for starting the housing bubble, pushing banks and the GSEs to lower their standards (the lower standards for banks was a CRA inspired idea), and handing off to Bush a 10 year 2.3 trillion dollar HUD low- and moderate-income housing plan that masked the millions of jobs that were sent to China after Clinton signed PNTR in Oct of 2000. And he probably pushed PNTR as payback to the illegal contributions that he and the DNC got from them.

Bush certainly has blame for it as well as were a number of dems and reps. I also blame banks and the real estate industry as well as greedy people (and some of this greed can be traced back to Clinton ending the capital gains tax on real estate which probably also played a role in fueling the biggest ever housing bubble in US history).
“We should have been warned by the CFC/ozone affair because the corruption of science in that was so bad that something like 80% of the measurements being made during that time were either faked, or incompetently done.”

- Scientist James Lovelock

User avatar
Troglodyte
Posts: 16607
Joined: Mon Nov 26, 2007 4:33 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby Troglodyte » Tue Jan 29, 2013 9:42 am

May be time for an adjustment.....

US consumer confidence down sharply in January
Published: Bangkok Post: 29 Jan 2013 at 22.44 Online news: World
LINK

US consumer confidence fell sharply for the second straight month in January, the Conference Board said Tuesday, dropping below where it was a year earlier.
The board's consumer confidence index sank to 58.6 in January from 66.7 in December, far below the 2012 peak of 73.1 in October.

The January level was also below where the index stood in January 2012, as readings on consumer views of the current situation and the outlook both diminished. It was the third consecutive monthly decline in confidence.

"Consumer confidence posted another sharp decline in January, erasing all of the gains made through 2012," said the Conference Board's Lynn Franco.

"Consumers are more pessimistic about the economic outlook and, in particular, their financial situation," she said in a statement.

"The increase in the payroll tax has undoubtedly dampened consumers' spirits and it may take a while for confidence to rebound."
I don't suffer from any mental illnesses.. I enjoy them..

User avatar
Parrotpaul
Posts: 33550
Joined: Sun Oct 15, 2006 2:14 pm

Re: Here Is Why The Dow Just Passed 13,000

Postby Parrotpaul » Tue Jan 29, 2013 9:47 am

There it is, Trog...I have been sitting here for the past month wondering what in hell is driving the market UP...as it is presently doing again today....58 points Thanks for that. :D

PS....I understand people are probably pissed their taxes went up...unfortunately, someone has to pay for all those aircraft carriers, missiles, and submarines we need to keep us safe.
"I think I may say that of all the men we meet with, nine parts of ten are what they are, good or evil, useful or not, by their education." John Locke

Return to “The Economy”

Who is online

Users browsing this forum: No registered users and 1 guest