Stocks rally to 5 month highs

Discussion in 'Economy' started by Chris, Oct 5, 2010.

  1. Chris
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    Chris Gold Member

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    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
     
  2. Paulie
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    Paulie Platinum Member

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    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.
     
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  3. william the wie
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    william the wie Gold Member

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

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    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.
     
  5. Chris
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    Chris Gold Member

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    America will succeed, even though the Republicans are praying it will fail.
     
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  6. loosecannon
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    loosecannon Senior Member

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    please define success and clarify whether you are speaking of the past or the future.
     
  7. Chris
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    Chris Gold Member

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

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    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.
     
  9. william the wie
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    william the wie Gold Member

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    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.
     
  10. Chris
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    Chris Gold Member

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    Hardly.

    A trillion dollars wasted in Iraq.

    Sorry, that was George Bush.
     

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