Wil the Dow set a new high today?

Tommy Tar
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Re: Wil the Dow set a new high today?

Post by Tommy Tar » Wed Sep 18, 2013 11:40 am

:shock:
Gold up $45
Silver up 6%
Oil up over $3
EEM up over 4%

Wall Street =D>

Main Street :yawn
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Wabash
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Re: Wil the Dow set a new high today?

Post by Wabash » Wed Sep 18, 2013 2:29 pm

The Dow is up almost 20% for the year. Corporate profits are at record levels.

Yet conservatives continue to claim Obama is ruining the economy.

I'm sure that will come to a screeching halt when the loonies in the GOP shut down the government at the end of the month.
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.

Tommy Tar
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Re: Wil the Dow set a new high today?

Post by Tommy Tar » Wed Sep 18, 2013 4:02 pm

The Feds are printing 85 billion dollars every month. Then buying 85 billions dollars of bonds with it. Thats over 2 hundred dollars for every man woman and child. How about next month they mail out the 2 hundred bucks and see what that will do to help main street. See how fast people get their jobs back when companies can't keep up with orders :D Now all that money is sitting in banks and going into wall street. When is someone going to say this is not working. :shrug:
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Notorious
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Re: Wil the Dow set a new high today?

Post by Notorious » Thu Sep 19, 2013 1:01 pm

Stimulus packages don't really work though, they always get used on debt that has already been accrued rather than new purchases.
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Re: Wil the Dow set a new high today?

Post by MDDad » Thu Sep 19, 2013 1:30 pm

That's not true. When the government sends a household a windfall check, the number of families that use it towards buying a new iPhone or flat screen far outnumber the families that use it to pay down credit card debt. That's one small reason we are in the financial straits we're in.

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Wabash
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Re: Wil the Dow set a new high today?

Post by Wabash » Thu Sep 19, 2013 2:53 pm

Notorious Wrote: Stimulus packages don't really work though, they always get used on debt that has already been accrued rather than new purchases.

Presidents FDR and Reagan would disagree with you. They both used economic stimulus to get the economy out of recession.
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.

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kramer
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Re: Wil the Dow set a new high today?

Post by kramer » Thu Sep 19, 2013 7:19 pm

FDR's stimulus didn't work. As to Reagan, didn't he do something with oil that lowered the price of it? If he did, that to me is more likely the main reason for the economic recovery during his two terms.
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Re: Wil the Dow set a new high today?

Post by Fordama » Fri Sep 20, 2013 10:21 am

Reagan borrowed and spent like crazy.

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Re: Wil the Dow set a new high today?

Post by Wabash » Fri Sep 20, 2013 11:17 am

Kramer Wrote: FDR's stimulus didn't work.

We've been through numerous times. Facts show that it did. Every economic indicator had improved at the end of his first term.

This continued except for a mini-recession in the late 30's. The economic stimulus of the spending to fight WW II was the end of Great Depression and led the US back to prosperity.

Reagan did lift price controls on oil and gas. While that helped the economic recovery, his almost tripling of the national debt (incurring record deficits not seen in the post WW II era) was the major factor in recovery.

It's really pretty simple econ. One person's spending is another person's revenue, and one person's revenue is another person's spending.
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.

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Troglodyte
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Re: Wil the Dow set a new high today?

Post by Troglodyte » Sat Sep 21, 2013 9:07 am

$85Billion worth of bonds a month sounds like a lot of "help". But what bonds?
Usually they're municipal bonds. Road projects, school projects, the Moonbeam express..
All are temporary jobs lasting about a year. Not enough job security to commit to buying a house, or even a car. Maybe pay off the credit cards, or catch up on house payments, but not enough to replace emptied savings accounts or sold stocks.
That coupled with the penchant for most companies to hire part time (over 50% of new jobs) to do an end run around Obamacare. Doesn't do a whole hell of a lot for our economy except for Team Obama to claim they are lowering unemployment numbers and working hard to improve things.
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tLIB
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Re: Wil the Dow set a new high today?

Post by tLIB » Sun Sep 22, 2013 1:52 am

Tommy wrote:
Now all that money is sitting in banks and going into wall street.
That is true. Plus, the Fed announced they would not start their taper yet, but hinted earlier that they would do it by the end of the year. Nothing is written in stone, so they may not taper at all for a while.

Also, Kramer mentioned the RE bubble. This could be another bubble, but with equities. Gold has been also following suit because of the Federal Reserve actions.

I agree with Wabash about the way the Fed has responded. During the Depression they tightened things up and things got worse. Bernanke didn't do that, but IMO, they should start tapering. But that would be bad for equities, but it would be better than another crash of maybe 2K or 3K points on the Dow??? I think Wall Street had already built in the taper price, but when no taper was announced, it bounced back.

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kramer
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Re: Wil the Dow set a new high today?

Post by kramer » Sun Sep 22, 2013 5:21 am

Fordama wrote: Reagan borrowed and spent like crazy.
How did he get away with this when he had a spend-happy democratic house and senate under his two terms?
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Wabash
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Re: Wil the Dow set a new high today?

Post by Wabash » Sun Sep 22, 2013 6:18 am

Kramer wrote: How did he get away with this when he had a spend-happy democratic house and senate under his two terms?

Yet another conservative myth. Albeit this one is only a partial myth. While the Dems enjoyed a majority in the House during Reagan's administration, the GOP enjoyed a majority in the Senate for the first six of his eight years.

More importantly, Reagan never used his veto power as president. So his fingerprints are on that deficit knife.
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.

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tLIB
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Re: Wil the Dow set a new high today?

Post by tLIB » Sun Sep 22, 2013 12:39 pm

Also, Reagan's proposed budgets were in line with what was actually passed. In 1984 he proposed a budget even higher than what was passed. I think Reagan's optimistic view of revenue was part of the problem.

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