I have turned into a bear.


The stock market is on its way to 12500.

Those bazztids and Goldman and Bear are hiding something.

Countrywide- suck teeth

I am biding my time with a list of US stock from good companies beat down by this mess.

Come on 12500!


That is all. :D

They've been lying to you for a long time. Ever since the Dow hit 12,500 and you heard the term "Goldie Locks". Its garbage. If real GDP exceeds potential GDP you will have problems - in other words, short-term growth exceeds long-term growth (Bush's tax cuts and lowered interest rates fueled short-term growth). If real GDP exceeds potential GDP then corporations are turning profits and consumers are suffering because the price level increases but the wage level does not - which is why they should've raised the minimum wage level a long time ago. That's why the DJIA has been headed to 14,000 because higher price levels mean bigger profits. But the wage level has remained the same. In fact, because the interest rates dropped a few years ago the money supply has been higher than necessary causing inflated prices. The problem is that corporations will only turn a profit in the short run. Corporations expand but the wage level doesn't change which means that corporations will supply more than is demanded. If supply is greater than demand there is inefficiency. Corporations deal with inefficiency by firing people or shutting down. The more people that are out of work, the less people there are to buy stuff. Which means demand drops. If demand drops then corporate profits disappear. And the DJIA falls back to where it is supposed to be. 12,500 to 12,700.

They've been lying to you for a long time. Ever since the Dow hit 12,500 and you heard the term "Goldie Locks". Its garbage. If real GDP exceeds potential GDP you will have problems - in other words, short-term growth exceeds long-term growth (Bush's tax cuts and lowered interest rates fueled short-term growth). If real GDP exceeds potential GDP then corporations are turning profits and consumers are suffering because the price level increases but the wage level does not - which is why they should've raised the minimum wage level a long time ago. That's why the DJIA has been headed to 14,000 because higher price levels mean bigger profits. But the wage level has remained the same. In fact, because the interest rates dropped a few years ago the money supply has been higher than necessary causing inflated prices. The problem is that corporations will only turn a profit in the short run. Corporations expand but the wage level doesn't change which means that corporations will supply more than is demanded. If supply is greater than demand there is inefficiency. Corporations deal with inefficiency by firing people or shutting down. The more people that are out of work, the less people there are to buy stuff. Which means demand drops. If demand drops then corporate profits disappear. And the DJIA falls back to where it is supposed to be. 12,500 to 12,700.


So, can you say with some certainty that traders and investors, have been making a killing off of speculation in regards to the short term fluctuation?

Yes I can.

Yes I can.


So, there is really no real incentive to raise interest rates...would you say so?

Yes there is, there is all the incentive in the world to raise interest rates. Lower interest rates is what caused the problem in the first place.

But are you talking about the federal funds rate or LIBOR - the rates that financial institution loan to other financial institutions, or do you mean real interest rates like prime rates - the rates that non-institutional lenders loan money?? If you mean real interest rates, then those rates have already been raised - those rates move based on perceived risks like credit risk/default risk. And recently credit risk has been of significant influence driving real interest rates up. Central banks provided liquidity in order to ease the credit concerns and keep the rates relatively low. Otherwise, the last 4 years of free-riding on cheap money will catch up to more than just the subprime borrowers.

I need a broker, A lot of cash and some stocks in a few aviation and technology companies that are good long term investments. I have some in mind. What companies do you guys have stocks in and why?

What companies do you guys have stocks in and why?


I can answer that question for you:

I need a broker...

Best of luck..

....Which means demand drops. If demand drops then corporate profits disappear. And the DJIA falls back to where it is supposed to be. 12,500 to 12,700.

T,

From the looks of things, we might end up below 12500 (and stay there for awhile).

We are a 12540, down 336 points.

T,
From the looks of things, we might end up below 12500 (and stay there for awhile).
We are a 12540, down 336 points.


Notice the injections of liquidity hasn't done anything??

Listening to traders and brokers is idiocy. Housing is down. Manufacturing is down. Employment is down. The Fed can add trillions of dollars in liquidity and that'll only make matters worse. Following the europeans was stupid too. There's a reason why the dollar is viewed as the global currency. Most european economists don't know didley.