Government is full steam ahead in creating the next bubble.

Discussion in 'Economy' started by iamwhatiseem, Nov 5, 2010.

  1. iamwhatiseem
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    iamwhatiseem Gold Member

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    Well the DOW is looking gooooooood..whohooo!! 11,440...hot damn.
    I think the FED should buy some more debt and promise some more bailouts so the market can hit 12,000...let's do it!!

    Seriously though, this is getting scary. 11,400?? Really? And this is sustainable and based on real-tangible growth since 2009?
    Ummm..no. It's not.

    The economy is slowly getting better, October and November are clearly better. But....I am afraid our government is once again creating the next fall.
     
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  2. uscitizen
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    uscitizen Senior Member

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    More of the same Baby!

    Like a third Bush term.


    We have learned nothing yet.
     
  3. Annie
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    Annie Diamond Member

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    Wrong. 'We' have, Obama and the wishing to be privileged class haven't.
     
  4. uscitizen
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    uscitizen Senior Member

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    Republicans have Obama as well whether they like it or not.
     
  5. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Why do you think this is so bad?

    One of the underlying problems is that the Fed is at 0%. There's no where to go..

    And the congress isn't going to okay a second stimulus. The problem with the first is that it was way to small.
     
  6. uscitizen
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    uscitizen Senior Member

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    the stimulus was largely misspent.
    It would have done more to help the economy and jobs if it had just been divided up and given to citizens.

    More spending of money we do not have does not get us out of the debt problem we have in both public and private sector.

    and focusing on the market is not the answer.
    The old if the market is doing fine so is the US is bullcrap.
     
  7. loosecannon
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    loosecannon Senior Member

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    Bushanomics II.

    I predicted this shit years ago and could never figure out why they didn't get it done.

    Probably cuz it won't work if all the QEII cash ends up inflating stocks commodities and whatever new fake assets (leased gold) WS is cooking up.

    But it might still look good on paper!
     
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  8. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Not so sure about the first part. Lots of it was sort of investment and shoring stuff up. It was definitely to small.

    But the Fed at 0% is definitely a problem. The only way to remedy that is with inflation..of some sort..so it can justifiably be raised. Buying up debt is also a 2fer..adding liquidity and snapping up T-bills.
     
  9. loosecannon
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    loosecannon Senior Member

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    It may not be so bad. We still don't know if it will work.

    The Japanese did the same thing with $20 billion a month ago and it only worked for a week.

    Meanwhile the Chinese have thrown out $3 trillion to deflate the yuan and that seems to have been enough.

    But there are so, so many more dollars in circulation than there are yuan that it may take $300 trillion to get the same results the Chinese have managed.
     
  10. loosecannon
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    loosecannon Senior Member

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    It's called monetizing the debt and it is usually the last straw before a currency reset.
     

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