Before The Fed Announced QE3, I thought there would be a huge crash soon.

Discussion in 'Stock Market' started by philosophstar, Sep 19, 2012.

  1. philosophstar
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    philosophstar BANNED

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    Now I think that if the S&P 500 got below 1250, that would be shocking.

    Still, there's always the Eurozone. That isn't even close to being resolved.
     
  2. philosophstar
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    I still wouldn't buy any bank stocks now. I'd wait for a 30% drop in those. Still, 30 years from now, they might really be worth something. Maybe even 80% of the 2007 high.
     
  3. TruthSeeker56
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    TruthSeeker56 Silver Member

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    You have it reversed.

    The huge crash will happen now that QE3 has been announced.

    What will you do when the DJIA drops to 5,000 or less?
     
  4. eflatminor
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    eflatminor Classical Liberal

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    Now that they continue to monetize the debt, you can count on a huge crash later.
     
  5. philosophstar
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    Revive this thread when the DJIA drops through 5000 or when the S&P drops through 600. Shouldn't happen in my lifetime, as I see it.
     
  6. eflatminor
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    eflatminor Classical Liberal

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    Let's assume you're correct. What a FUCKED UP thing to do to the next generation! Personally, I can't be that cruel to those yet to be born.
     
  7. philosophstar
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    Uh, how is avoiding a market crash fucked up?

    [​IMG]
     
  8. eflatminor
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    eflatminor Classical Liberal

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    Monetizing the debt may help to bolster the stock market in the near term, but in the long run, it causes a massive crash to the entire economy, not just the stock market. If you study history and the causes of hyperinflation, monetizing the debt is generally the last step before everything goes down the toilet.

    As it stands today, every taxpayer's share of the debt is about $140,000...and that's with interest rates near zero. What do you think will happen when we return to historically normal interest rates, much less hyperinflation?

    Oh well, who cares? Screw the kids...let our largess be their problem. :eusa_hand:
     
  9. philosophstar
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    Why don't you tell the Japanese people about hyper-inflation? It should have happened 4 years ago, according to some people. :rofl:

    Oh, and don't give me that horseshit about an individual citizen's share of the debt and the burden on future generations. National debt really doesn't work that way.
     
  10. philosophstar
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    We should get debt-to-gdp back in order, but trying to do so when the labor market is this bad would be counter-productive, both on the balance sheet and on job prospects for unemployed people.
     

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