Stocks rally to 5 month highs

[Chris]

NEW YORK (CNNMoney.com) -- U.S. stocks rallied right out of the gate and continued to surge Tuesday, with all three major indexes gaining about 2% and finishing at their highest levels since May. Investors welcomed a surprise move by the Bank of Japan to cut its key lending rate, as well as improved data for the U.S. service sector.

The Dow Jones industrial average (INDU) jumped 193 points, or 1.8%, to finish at 10,945, its highest level since May 3. Gains were broad-based as 29 of 30 Dow issues closing higher, with Boeing (BA, Fortune 500), Bank of America (BAC, Fortune 500) and DuPont (DD, Fortune 500) logging the biggest increases.

CNNMoney.com Market Report - Oct. 5, 2010

 

[Paulie]

This is because the Fed is going to monetize the debt and further dilute the money supply. It's bullish for metals, bonds, and stocks.

I'm sure you would prefer to think of this as an indication of some kind of magical democrat success though.

 

[william the wie]

This is because the Fed is going to monetize the debt and further dilute the money supply. It's bullish for metals, bonds, and stocks.

I'm sure you would prefer to think of this as an indication of some kind of magical democrat success though.

you may be overoptimistic too. This is the generally counter-trend turnaround Tuesday we are talking about.

 

[loosecannon]

I think we may have experienced a 2% inflation realization day.

QE squared, or cubed, or whatever...

Expect the stock market to soar, housing prices to recover and our debt to become magically tolerable, while your wages fall and gas and food prices rise and all of that is the direct result of QE magic!

It's a horrible solution, but the only solution we have left. Thank God we aren't just resetting the dollar to 1/10th of yesterday's value.

 

[Chris]

This is because the Fed is going to monetize the debt and further dilute the money supply. It's bullish for metals, bonds, and stocks.

I'm sure you would prefer to think of this as an indication of some kind of magical democrat success though.

America will succeed, even though the Republicans are praying it will fail.

 

[loosecannon]

This is because the Fed is going to monetize the debt and further dilute the money supply. It's bullish for metals, bonds, and stocks.

I'm sure you would prefer to think of this as an indication of some kind of magical democrat success though.

America will succeed, even though Republicans are praying it will fail.

please define success and clarify whether you are speaking of the past or the future.

 

[Chris]

This is because the Fed is going to monetize the debt and further dilute the money supply. It's bullish for metals, bonds, and stocks.

I'm sure you would prefer to think of this as an indication of some kind of magical democrat success though.

America will succeed, even though Republicans are praying it will fail.

please define success and clarify whether you are speaking of the past or the future.

The economy is going to continue to grow, but it will take a while to correct the disaster that was George Bush.

 

[loosecannon]

America will succeed, even though Republicans are praying it will fail.

please define success and clarify whether you are speaking of the past or the future.

The economy is going to continue to grow, but it will take a while to correct the disaster that was George Bush.

well even Japan's completely stagnant economy has grown .6%/year for the last few "lost" decades.

Growth that is less than 3% is insufficient to maintain wages and our massive debt service.

The problem isn't the result of Bush, that's just partisan idiocy speaking.

Do you live in Ohio?

ALL of us contributed to the downfall of the USA. Partisans esp, they did more damage than anyone. Even Wall Street.

 

[william the wie]

With the state courts and legislatures piling on in the current foreclosure documentation crisis money equal to about 1/3-1/2 GDP in starting to disappear. The results may not really kick in until 2012 but it will kill Obama's shot at reelection because most of that money is outside the US. While I could list the various bad outcomes that may result I doubt that I could figure out all of the ways this could hurt us and one bad outcome does not necessarily exclude all other possible bad outcomes. In sum today's action has zero longrun implications.

 

[Chris]

please define success and clarify whether you are speaking of the past or the future.

The economy is going to continue to grow, but it will take a while to correct the disaster that was George Bush.

well even Japan's completely stagnant economy has grown .6%/year for the last few "lost" decades.

Growth that is less than 3% is insufficient to maintain wages and our massive debt service.

The problem isn't the result of Bush, that's just partisan idiocy speaking.

Do you live in Ohio?

ALL of us contributed to the downfall of the USA. Partisans esp, they did more damage than anyone. Even Wall Street.

Hardly.

A trillion dollars wasted in Iraq.

Sorry, that was George Bush.

 

[Dick Tuck]

The economy is going to continue to grow, but it will take a while to correct the disaster that was George Bush.

well even Japan's completely stagnant economy has grown .6%/year for the last few "lost" decades.

Growth that is less than 3% is insufficient to maintain wages and our massive debt service.

The problem isn't the result of Bush, that's just partisan idiocy speaking.

Do you live in Ohio?

ALL of us contributed to the downfall of the USA. Partisans esp, they did more damage than anyone. Even Wall Street.

Hardly.

A trillion dollars wasted in Iraq.

Sorry, that was George Bush.

The same Bush who said that Iraq would only cost $60 billion and finance its own reconstruction. Yeah, that was money well spent.....not!

 

[Neubarth]

The economy continues to collapse. We are falling deeper and deeper into this Depression. The number of people who had jobs three years ago who do not have jobs now is in excess of 30 Million. Most of them are on food stamps, so they are not going hungry like so many did during the Depression.

 

[loosecannon]

Hardly.

A trillion dollars wasted in Iraq.

Sorry, that was George Bush.

actually that was senator Obama, the dem majority of 06 and the dem minority since 2003. Bush merely signed the authority and appropriations bills for the Iraq war that the dems legislated.

And now that it is Obama's war, it lingers on with an indefinite 50K+ troop deployment.

Since you know all of this why do you persist in posting known lies?

 

[topspin]

My 401K just past it's pre crash level. Boo Yahh

 

[JWBooth]

Stocks rally to 5 month highs

Peter Schiff blew a hole in the bottom of this paper boat with this column:

Schiff Responds to Dudley, Fed

One telling quote from the article:

"Although the inflation being created by the Fed may not be showing up immediately in rising rents or auto prices, it is nevertheless pushing up asset prices in other areas. Many commentators are celebrating the "best September for the Dow and S&P in 71 years," rising 7.7% and 8.8% respectively. Well, it was also a pretty great September for soybeans (up 9.5%), rice (up 10%), oil (up 11%), corn (up 12.2%), orange juice (up 13%), cotton (up 17.5%), and sugar (up 19.3%). In fact, the whole CRB is up 8.7%. The Swiss franc is up 4.6%, the euro up 7%, the Aussie dollar up 9%. Gold is at all-time highs, silver at 30-year highs, and copper at 3-year highs.

​

In other words, the box of Uncle Ben's in my kitchen cabinet had a better month than the Dow Jones Industrials. The same could be said for the boxer shorts in my dresser. Could it be that the Dow isn't rising, but the dollar falling?"

 

[Mini 14]

And yet there isn't a stock to be found that can keep up with gold and silver, unemployment continues to rise, and people are spending far less money.

The dollar is on the precipice of implosion.

 

[william the wie]

And yet there isn't a stock to be found that can keep up with gold and silver, unemployment continues to rise, and people are spending far less money.

The dollar is on the precipice of implosion.

Well gold appears to be ready to double or triple in price but the goal appears to be handing China seriously negative cashflow if it doesn't abandon its currency peg. If either of those goals is reached the outcome is not knowable. China may be several orders of magnitude more fragile than is being estimated in which case the bottom will fall out of the Far East and the EU and soon. At that point who knows what will happen.

 

[editec]

The value of gold and silver really doesn't change all that much except by demand driven by fear.

Kids when I was a kid a silver dime bought a loaf of bread.

It STILL does given that a silver dime is worth about $3.00.

What really changed?

Not the bread and not the silver dime.

The currency's purchasing power changed.

You can make money investing (or divesting) in gold and silver IF you can intuit the FEAR ZIETGIEST before other investors do.

 

[loosecannon]

Stocks rally to 5 month highs

Peter Schiff blew a hole in the bottom of this paper boat with this column:

Schiff Responds to Dudley, Fed

One telling quote from the article:

"Although the inflation being created by the Fed may not be showing up immediately in rising rents or auto prices, it is nevertheless pushing up asset prices in other areas. Many commentators are celebrating the "best September for the Dow and S&P in 71 years," rising 7.7% and 8.8% respectively. Well, it was also a pretty great September for soybeans (up 9.5%), rice (up 10%), oil (up 11%), corn (up 12.2%), orange juice (up 13%), cotton (up 17.5%), and sugar (up 19.3%). In fact, the whole CRB is up 8.7%. The Swiss franc is up 4.6%, the euro up 7%, the Aussie dollar up 9%. Gold is at all-time highs, silver at 30-year highs, and copper at 3-year highs.

​

In other words, the box of Uncle Ben's in my kitchen cabinet had a better month than the Dow Jones Industrials. The same could be said for the boxer shorts in my dresser. Could it be that the Dow isn't rising, but the dollar falling?"

it could be true, but tell that to the folks who say that the Fed hasn't pulled the trigger on QE2 yet. I think they have. Others disagree.

 

[loosecannon]

And yet there isn't a stock to be found that can keep up with gold and silver, unemployment continues to rise, and people are spending far less money.

The dollar is on the precipice of implosion.

Well gold appears to be ready to double or triple in price but the goal appears to be handing China seriously negative cashflow if it doesn't abandon its currency peg. If either of those goals is reached the outcome is not knowable. China may be several orders of magnitude more fragile than is being estimated in which case the bottom will fall out of the Far East and the EU and soon. At that point who knows what will happen.

I am dubious that debasement is gonna force China's hand unless it is done in a coordinated fashion and at full throttle. But nothing keeps China from resuming the peg later.

Everything revolves around asset prices rising steeply against the dollar. If that doesn't happen and stick. I doubt the debasement can work.

But on the other hand if debasement is just about trimming a few %points off individual currencies to gain a trade advantage, that is doable.