economy is not on a rebound, it's on a roar

[emptystep]

Here is a DJI chart from 2000 to current.

At the peak of the dot com bubble, January 2000, the DJI reached 11,750.28.
(Arguably the DJI would have been higher if so much money was not in the NASDAQ.)
At the peak of the housing bubble, October 11, 2007, the DJIA hit an intra-day peak of 14,198.10.

On October 5th, 2012 the DJI was at 13,610.15, not the 14, 198 high but well about the dot com bubble high of 11,750. Right now the DJI is at 13,570.31. That is 628 off the all time high of the DJI. If anyone can name a bubble at the moment I would love to hear it.

If you were in the SPDR Dow Jones Industrial Average ETF with a high of 135.64 and current price of 135.50 you would only be off by 14 cents per share.

If you look at the slope of that chart someone(s) is pouring a Hell of a lot money into the market like it was a sure thing.

Without a bubble and with a slope like that the to say the U.S. economy is on a 'rebound' is the understatement of the decade.

Before you drop all of your 401k allocation into the SPDR Dow Jones Industrial Average ETF however you should wait and see if Congress fucks everything up in the next couple of months.

 

[Mad Scientist]

The problem with using the DJIA as an Economic Indicator is that Banks (International not just US Banks) are taking money from the Federal Reserve at low interest rates and playing it on the Stock Market.

All they're doing is Day Trading enhanced by Algorithmic Programs that buy and sell in micro seconds. Then of course, they pay each other fees for the transactions.

Yes, you DO need to drop all your 401K allocations and start buying Gold and Silver instead because the Dollar is finished. What the US Gov't doesn't take from you investment will be wiped out by hyper-inflation. Probably this year.

 

[Avorysuds]

Oh wow, odd how no one on the streets (American citizens) seem to feel this giant OMFGZ in your face "roaring" economy....

Instead we get UE numbers that are dismal at best and that’s even if you don’t count that the UE numbers count people falling off the ass end (unemployed too long so they lose their welfare check) get counted as a job created that month.


What kills me is how Democrats, liberals and Progressives would claim a roaring stock market under a President like Bush or lets just be fair, any Republican President, means that there is corruption and they are simply making the rich richer, and that's bad! But under Obama if he literally hands the rich hundreds of billions of printed money it's considered a "roaring recovery!!!."

 

[Avorysuds]

Fuck that chart has us doing better than under the great Clinton!!!

 

[emptystep]

Oh wow, odd how no one on the streets (American citizens) seem to feel this giant OMFGZ in your face "roaring" economy....

Instead we get UE numbers that are dismal at best and that’s even if you don’t count that the UE numbers count people falling off the ass end (unemployed too long so they lose their welfare check) get counted as a job created that month.


What kills me is how Democrats, liberals and Progressives would claim a roaring stock market under a President like Bush or lets just be fair, any Republican President, means that there is corruption and they are simply making the rich richer, and that's bad! But under Obama if he literally hands the rich hundreds of billions of printed money it's considered a "roaring recovery!!!."

That is an excellent point.

 

[emptystep]

The problem with using the DJIA as an Economic Indicator is that Banks (International not just US Banks) are taking money from the Federal Reserve at low interest rates and playing it on the Stock Market.

All they're doing is Day Trading enhanced by Algorithmic Programs that buy and sell in micro seconds. Then of course, they pay each other fees for the transactions.

Yes, you DO need to drop all your 401K allocations and start buying Gold and Silver instead because the Dollar is finished. What the US Gov't doesn't take from you investment will be wiped out by hyper-inflation. Probably this year.

Does that equate to a bubble or house-of-cards situation? The automatic trading is what I would say is the greatest threat, after Congress of course, to the markets.

 

[SteadyMercury]

Yes, you DO need to drop all your 401K allocations and start buying Gold and Silver instead because the Dollar is finished. What the US Gov't doesn't take from you investment will be wiped out by hyper-inflation. Probably this year.

Sheesh some are almost dangerous when they give financial "advice" to others. That is right everyone, on the advice of some guy on the internet who foresees a crash of one of the most stable currencies in the world, you should swallow the penalties that come with emptying your 401ks to put all your eggs in one basket containing a relatively volatile precious metal commodity. Sounds good.

Lets check out some of your other sage wisdom from 2009:

Dow returns to the 5000-6000 level.

Good one! It closed 2009 at about 10,500 and is now at about 13,600.

From 2010:

The Fed is going to print more money and inflation will result.

Inflation has been what 2%?

I'll go out on a limb and speculate you have very little if any money invested in gold, or anything for that matter. An internet expert with no skin in the game.

 

[sjay]

I really hope you stick around Steady M. now if we could get Toro and William the Wie to post more frequently like they used to and ignore all the political hacks who waste space here this would again become a pretty good ECONOMICS forum.

 

[Rozman]

Here is a DJI chart from 2000 to current.

At the peak of the dot com bubble, January 2000, the DJI reached 11,750.28.
(Arguably the DJI would have been higher if so much money was not in the NASDAQ.)
At the peak of the housing bubble, October 11, 2007, the DJIA hit an intra-day peak of 14,198.10.

On October 5th, 2012 the DJI was at 13,610.15, not the 14, 198 high but well about the dot com bubble high of 11,750. Right now the DJI is at 13,570.31. That is 628 off the all time high of the DJI. If anyone can name a bubble at the moment I would love to hear it.

If you were in the SPDR Dow Jones Industrial Average ETF with a high of 135.64 and current price of 135.50 you would only be off by 14 cents per share.

If you look at the slope of that chart someone(s) is pouring a Hell of a lot money into the market like it was a sure thing.

Without a bubble and with a slope like that the to say the U.S. economy is on a 'rebound' is the understatement of the decade.

Before you drop all of your 401k allocation into the SPDR Dow Jones Industrial Average ETF however you should wait and see if Congress fucks everything up in the next couple of months.

The DJIA and NASDAQ are two indicators out of many that tell the story of the health of the economy...

I know the lefties can't go more then 15 minutes without praising Obama but the Obama economy is stagnant at best.

 

[SteadyMercury]

Agreed, DIJA and NASDAQ are one of many, and if anyone needs evidence of how accurate they portray the health of the economy look where they were in 2008. They screamed all-time highs, right before shit fell off the cliff.

Not sure about stagnant, but its pretty close to that. Weak growth at best, with all sorts of potential events leading to derailment.

 

[CrusaderFrank]

Nothing says "Roar!" Like 8% UE for 5 years

 

[Dot Com]

Oh wow, odd how no one on the streets (American citizens) seem to feel this giant OMFGZ in your face "roaring" economy....

Instead we get UE numbers that are dismal at best and that’s even if you don’t count that the UE numbers count people falling off the ass end (unemployed too long so they lose their welfare check) get counted as a job created that month.


What kills me is how Democrats, liberals and Progressives would claim a roaring stock market under a President like Bush or lets just be fair, any Republican President, means that there is corruption and they are simply making the rich richer, and that's bad! But under Obama if he literally hands the rich hundreds of billions of printed money it's considered a "roaring recovery!!!."

so conservative businessmen don't move production overseas?

 

[SteadyMercury]

Nothing says "Roar!" Like 8% UE for 5 years

To be fair, OP was talking about current state of the economy. What it was 5 years ago isn't a refutable point.

 

[CrusaderFrank]

Nothing says "Roar!" Like 8% UE for 5 years

To be fair, OP was talking about current state of the economy. What it was 5 years ago isn't a refutable point.

The economy still blows.

 

[SteadyMercury]

Maybe so, "blows" is a pretty open-ended term and I'm sure plenty of people would classify it as that.

 

[emptystep]

Nothing says "Roar!" Like 8% UE for 5 years

To be fair, OP was talking about current state of the economy. What it was 5 years ago isn't a refutable point.

Don't be fair. Look someone's net worth is going through the freaking roof right now and that is based on bets made on the U.S. economy. I never said it was anyone in particular. All I said was that someone is watching their portfolio go like Jack's beanstalk these last few years.

 

[Zander]

Fuck reality- look at this chart!



Sorry son, the Stock Market is not "the economy".

 

[emptystep]

Fuck reality- look at this chart!



Sorry son, the Stock Market is not "the economy".

Why do people invest in the stock market?

 

[The Rabbi]

Nothing says "Roar!" Like 8% UE for 5 years

GDP growth is like 2%. That is not a roar. That is not really even growth. Obama has delivered the worst economic performance of any president since WW2. He needs to resign.

 

[SteadyMercury]

GDP growth is like 2%. That is not a roar. That is not really even growth.

Nah I'm pretty sure 2% growth is growth.