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TimS

Dow Jones - what was that?

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It went up 80 points in 2 minutes icon25.gif From 2:16 to 2:18, it took the biggest instant jump I've ever seen, in just the time it took for me to change to a different view - never seen anything like it.

 

What happened? Did we get a new president or something already? wink.gif

 

TimS

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Yep....early analysts said it would not happen....whenever a curve is thrown.....bam one way or the other. While it looks good at first glance......future implications could be devastating.

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View Postfederal reserve said it would repurchase up to $300B of u.s. treasuries.

 

 

what they didn't say is that they would print money to do that.

 

How are we gonna get out of this recession by printing more money? I mean, the previous White House coulda printed a few trillion dollars if they wanted, but that does nothing but make the money you already own worth less cwm13.gif How does that fix anything long term?

 

 

At least that explains the jump - which in my opinion, will be a big pump up after the news just prior to another enormous institutional liquidation redface.gif

 

 

TimS

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View PostHow are we gonna get out of this recession by printing more money? I mean, the previous White House coulda printed a few trillion dollars if they wanted, but that does nothing but make the money you already own worth less cwm13.gif How does that fix anything long term?

 

At least that explains the jump - which in my opinion, will be a big pump up after the news just prior to another enormous institutional liquidation redface.gif

 

TimS

 

 

uh, yeah. in the long run, that's precisely the rub.

 

however, the Street doesn't care. all it cares about is that the federal reserve is using another shady tool - buying u.s. treasury bonds - to keep interest rates low. this is one of the few tools left to the fed to manage rates, as the ffed (federal funfds) rate is basically at zero (0.25%) and can't go lower.

 

the fed is embarking on a reflate or die strategy. it will turn out to be a disaster when inflation rears its ugly head again and the economy isn't chugging along.

 

we have to draw a distinction between puffing up asset values with cheap money (stocks, house prices) and real economic growth. you can have one without the other.

 

it's an illusion of wealth.

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View PostHow are we gonna get out of this recession by printing more money? I mean, the previous White House coulda printed a few trillion dollars if they wanted, but that does nothing but make the money you already own worth less cwm13.gif How does that fix anything long term?

 

 

At least that explains the jump - which in my opinion, will be a big pump up after the news just prior to another enormous institutional liquidation redface.gif

 

 

TimS

 

these people can't even take a look back at history and learn from past mistakes. During WWI germany decided to print massive amounts of money leading to hyper-inflation that destroyed the value of currency and made most germans lose all their money. its like everyone is willing to make this same mistake over again.

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View Postthese people can't even take a look back at history and learn from past mistakes. During WWI germany decided to print massive amounts of money leading to hyper-inflation that destroyed the value of currency and made most germans lose all their money. its like everyone is willing to make this same mistake over again.

 

 

 

Not many arrows left in the feds quiver with Fed funds rate at .25%.

 

It was up against its ability to heal the economy.

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we have to draw a distinction between puffing up asset values with cheap money (stocks, house prices) and real economic growth. you can have one without the other.

 

They shoulda thought of that before NAFTA and every other arrangements pushed through Congress that made it so attractive to ship all manufacturing to other countries cwm13.gif Hard to grow the economy here when so many businesses moved the jobs to Mexico and China. Too bad nobody listened to the little guy with big ears, Ross Perot explained exactly what would happen with NAFTA - was I the only one that believed him? cwm27.gif

 

 

TimS

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tim ya ever notice the goofy lookin guys like Perot and Paul are so unelectable, and such jokes to the big 2 parties.....yet it seems they are right far more than the big 2 parties are........one of those things that makes ya wonder.........

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