Real GDP hasn’t even been positive for 8 years (except for one quarter). Thus, the GDP number used to provide the ratio is bogus. It is much lower in reality. We have been consuming more than we produce and that makes GDP an illusion for all that is above what we produce.
We started borrowing $1 [...]
In early 2007 Paulson and Bernanke became aware that there were problems and the economy was in jeopardy. Their first move was to protect the elite (their peers, i.e. Goldman, JP morgan, etc.). Bernanke probably thought that rate cuts, sharing key information with a few of the elite, and doling out Fed largess would solve [...]
As 2009 arrived, the second year of the recession, everyone should be careful how the situation change in order to protect yourself whether you play stock market or not. For doing that, you have to properly monitor the market. A lot of uncertainties laid ahead, I can’t predict the short-term movements of the stock [...]
Buy low, sell high, recession/depression create buying opportunities.
I think this opportunity is different because it is the long-term that is in jeopardy because of the wasteful spending of Washington and lack of oversight and frankly the level of corruption that is allowed to exist.
Here is what I know to be typically true of the [...]
Someone please tell me, how much of a joke can this market get? The comedy has gone into high gear.
“Investors” have “shrugged off” historic unemployment, historic weakness in manufacturing, historic financial chaos, historic losses, and a host of other historically poor data. If this market is trying to prove to the worldwide investing community [...]
Look at the manufactured joke hold its “gains.” Sure, no profit taking, no selling. I assume we won’t see the market give up 90% of today’s manufactured “gains” in the last 15 minutes, in the same way it gives up its losses. If I didn’t know any better, I’d say they’re trying to manufacture a [...]
It must, because so many adverse factors are already with us and need time to be resolved. Let us look at some of the basic facts:
1. most world shipping is currently idle;
2. the banking system is still not functioning;
3. that there is a crisis in trust and confidence;
4. that manufacturing output is pre-programmed to decline [...]
The questions keeps popping up, “Why all the euphoria and expectation that the indexes have bottomed out, that stock values are going to rise throughout December and January?” and “What is the source of all of these optomistic reports that seem to brush aside the economic realities that this country is going to have to [...]
Indicator 1) 10 day-hourly MACD chart of DJIA and SPX shows top being completed AND is now crossing downward.
Indicator 2) 10 day-hourly Slow Stochastic chart of DJIA and SPX shows top being completed.
Indicator 3) 1 year-daily MACD chart of DJIA and SPX also shows top being completed AND is now crossing downward
Indicator [...]
Anyone figure out why the upside down home owner must be saved rather than prosecuted? They got free and clear 100 to 400 thousand dollars out of their home. They weren’t stupid when they withdrew the equity and they certainly aren’t stupid by giving the house back to the bank. Now Congress is upset because [...]
Isn’t this the macro economic event all of the micro events have been pointing to? The US cannot bail out Lehman, Freddie, Fannie, AIG, etc without being caught up in their wake. The government is following the same bad business model that made some of these companies collapse. They are using short term debt to [...]
“I can’t see anything good whatsoever on the way in these third-quarter numbers,” Gimme Credit automotive analyst Shelly Lombard said. “GM and Ford are being overwhelmed by the global economic crisis and will likely throw themselves on the mercy on the court.”
The fact that the futures and overseas markets have been consistently higher tonight would [...]
To those people that think a strong rally will follow. Let’s say that we have a 30% rally (10%, 20%, is not a rally since in 1-2 days with this volatility any movement up will be averaged down etc). Say we go up 40%. Then the DOW will be back to 11000-12000(impossible).
The all time high [...]
Emergency measures
Bailout plan will help most Americans, but not as much as you might like
By Andrea Coombes & Ruth Mantell, MarketWatch
Last Update: 9/28/2008 5:18:00 AM
SAN FRANCISCO (MarketWatch) — The proposed $700 billion bailout package is aimed
at Wall Street, but how will it affect U.S. homeowners, consumers and savers?
The good news is the expected injection of [...]
“[T]he banking problems in the United States continue to mount, while the federal government’s deficit continues to soar out of control. . . . So what happened to cause the dollar to rally over the past three weeks? In a word, intervention. Central banks have propped up the dollar, and here’s the proof.
“When central [...]
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