Dow Drops 317. Time For Crackheads to Ween Themselves from Stimulus

[EconChick]

Not old debt...it's already locked in...

You need to study the bond market.

No I don't, I don't buy bonds, I buy land...sell land...

Moon, you need to study it so you don't say something as clueless as "this will help our debt." This will have a huge impact.

Look Obama has killed the bond market. Killed savings by pushing the return on bonds to be close to zero.

THAT is why everyone is in the stock market. They've been pushed there....not pulled by great economic conditions. This is the part of Keynsian theory where it goes tango uniform.

Once interest rates go up, people will start to rush to other investments....and out of the stock market.

 

[EconChick]

So what is the prediction of the wise ones, this time I'd like to hear it before something happens instead of popping up afterwards saying "I told you so!"

Is this the start of a true bear with a 20% drop? What is going to happen here?

You continue to completely miss the point.

The big picture point is that the Keynsian approach to big spending and cheap money finally has its limit. Today is the first sign they're coming to the end of the Keynsian benefits. Or better put, now it's time to start paying the piper for all the "create money out of nothing" approach this govt has taken for years.

The market will still go up and down....and the wise arbitrators will make money. I'm talking about this is the part where the Fed Chair is about to land a plane on the runway with blown out tires.

 

[SteadyMercury]

The big picture point is that the Keynsian approach to big spending and cheap money finally has its limit. Today is the first sign they're coming to the end of the Keynsian benefits. Or better put, now it's time to start paying the piper for all the "create money out of nothing" approach this govt has taken for years.

So the big "told you so" thread were you are celebrating your prognostication is about today being a sign?

What were telling people "just wait some day the stock market will show something that I can interpret as a sign" woohoo you sure nailed it with a concrete and measurable prediction. Is Cormier going to beat Jones at UFC 178 in September?

The market will still go up and down....and the wise arbitrators will make money. I'm talking about this is the part where the Fed Chair is about to land a plane on the runway with blown out tires.

Okay and what will be the result of blown out tires? You appear to be setting yourself up for more celebrations over vague predictions.

Will the market tumble more than 20%?

 

[EconChick]

It's not about the correction. We've had a lot of corrections. They happen all the time. We've been talking about what's different this time throughout this thread. Go back and read.

No, we haven't and no, they don't.

A correction is a 10% drop and we haven't had one since summer of 2011.

I'm talking about the market goes up and down up and down up and down all the time. The market corrects every day. Sometimes it makes bigger corrections than on other days. I'm not talking about the formal meaning of "correction."

When I was using the term "correction," I was talking about those changes of around 250, 300 points.....or when it is a formal correction of a lot more.

 

[Manonthestreet]

Citing an improving economy and labor market, the Federal Reserve agreed Wednesday to continue to wind down bond purchases intended to hold down long-term interest rates and spur growth. Fed cites better economy; cuts bond buys again

 

[EconChick]

The big picture point is that the Keynsian approach to big spending and cheap money finally has its limit. Today is the first sign they're coming to the end of the Keynsian benefits. Or better put, now it's time to start paying the piper for all the "create money out of nothing" approach this govt has taken for years.

So the big "told you so" thread were you are celebrating your prognostication is about today being a sign?

What were telling people "just wait some day the stock market will show something that I can interpret as a sign" woohoo you sure nailed it with a concrete and measurable prediction. Is Cormier going to beat Jones at UFC 178 in September?

The market will still go up and down....and the wise arbitrators will make money. I'm talking about this is the part where the Fed Chair is about to land a plane on the runway with blown out tires.

Okay and what will be the result of blown out tires? You appear to be setting yourself up for more celebrations over vague predictions.

Will the market tumble more than 20%?

Ok, clueless, obviously trying to get you to think strategically is impossible. This is where people who claim Keynsian economics is the best way to grow and fix an economy are about to start getting their rude awakenings. Since you don't seem to ever understand what I'm talking about, I'm saying Obama has been following very strong Keynsian principles that the rest of us keep saying are going to bite him and the country.

I don't expect you to get it. This is the classic fight between big spenders and fiscal conservatives.

 

[OnePercenter]

Well, look at that.

Just like those of us who actually understand the market predicted.

All that artificial driving up of the stock market numbers we kept warning about? Well, we told ya, what goes up, must come down.

And we warned ya that once there were "signs" of an "improving" economy, the crack heads would have to start weening themselves from all that free money pushing up the stock market. Well not free, but with zero interest rates, almost free.

Ooops, in Obama's fucked up Bizzarro World, good economic news is bad news for the stock market.

This is the watershed event. Watch smart investors start to slowly pull out.

Markets are rigged. It's called profit taking. I made 24% last year, and 2014 I'm at 19% and it's only July 31st. That, in of itself is a problem since I took partial 2013 in 2014. The drop is so the big guys have a loss to off-set taxes.

By December 31st, it'll be up 800 points. Or more.

 

[EconChick]

Well, look at that.

Just like those of us who actually understand the market predicted.

All that artificial driving up of the stock market numbers we kept warning about? Well, we told ya, what goes up, must come down.

And we warned ya that once there were "signs" of an "improving" economy, the crack heads would have to start weening themselves from all that free money pushing up the stock market. Well not free, but with zero interest rates, almost free.

Ooops, in Obama's fucked up Bizzarro World, good economic news is bad news for the stock market.

This is the watershed event. Watch smart investors start to slowly pull out.

Markets are rigged. It's called profit taking. I made 24% last year, and 2014 I'm at 19% and it's only July 31st. That, in of itself is a problem since I took partial 2013 in 2014. The drop is so the big guys have a loss to off-set taxes.

By December 31st, it'll be up 800 points. Or more.

Time to start weeding yourself from the crack darlin.

 

[OnePercenter]

Well, look at that.

Just like those of us who actually understand the market predicted.

All that artificial driving up of the stock market numbers we kept warning about? Well, we told ya, what goes up, must come down.

And we warned ya that once there were "signs" of an "improving" economy, the crack heads would have to start weening themselves from all that free money pushing up the stock market. Well not free, but with zero interest rates, almost free.

Ooops, in Obama's fucked up Bizzarro World, good economic news is bad news for the stock market.

This is the watershed event. Watch smart investors start to slowly pull out.

Wow! Like you predicted something that is a given...fluctuations in the stock market,, what's next? Are you going to predict the sun will appear in the East, in the early morning?

Well thanks for acknowledging what we fiscal conservatives have been saying for a long time. Liberals are still in denial....and will be in denial.


This is starting to play out like conservatives have said, not like liberals have said.

Liberals have been in denial about today's very event.

The sky is falling and Obama is bad 'cause the Republicans have nothing to offer.

 

[OnePercenter]

Well, look at that.

Just like those of us who actually understand the market predicted.

All that artificial driving up of the stock market numbers we kept warning about? Well, we told ya, what goes up, must come down.

And we warned ya that once there were "signs" of an "improving" economy, the crack heads would have to start weening themselves from all that free money pushing up the stock market. Well not free, but with zero interest rates, almost free.

Ooops, in Obama's fucked up Bizzarro World, good economic news is bad news for the stock market.

This is the watershed event. Watch smart investors start to slowly pull out.

Markets are rigged. It's called profit taking. I made 24% last year, and 2014 I'm at 19% and it's only July 31st. That, in of itself is a problem since I took partial 2013 in 2014. The drop is so the big guys have a loss to off-set taxes.

By December 31st, it'll be up 800 points. Or more.

Time to start weeding yourself from the crack darlin.

Care to make a wager?

 

[SteadyMercury]

Ok, clueless, obviously trying to get you to think strategically is impossible. This is where people who claim Keynsian economics is the best way to grow and fix an economy are about to start getting their rude awakenings.

Strategically? All I've seen is someone creating a "told you so" thread that apparently means she predicted some day there would be a sign, and in great irony in same thread we are to laugh at the silly liberals who jump on any good market news when said econ person who doesn't even understand what a correction is doing the same thing while weaseling out of any attempts to make her expand on predictions going forward.

Great strategist.

Since you don't seem to ever understand what I'm talking about, I'm saying Obama has been following very strong Keynsian principles that the rest of us keep saying are going to bite him and the country.

And that what this is about, politics not economics. Fair enough this is a politics forum but whenever I see someone talking economy and making references to the stupid conservatives or the stupid liberals you can be pretty sure that is the last person you'll get any wisdom from as they are just looking at the economy as a way to affirm their shallow minded political bias.

 

[Dutch]

Had nothing to do with Argentina defaulting today, did it?

 

[SteadyMercury]

Time to start weeding yourself from the crack darlin.

So where do you see the stock market at end of 2014?

Come on someone starting a "told you so" thread about the stock market (after a single drop day lol) surely has an opinion.

 

[OnePercenter]

Had nothing to do with Argentina defaulting today, did it?

No. Argentina defaulted (even though they don't think so) not because they don't have the monies, they want a better deal.

 

[OnePercenter]

Time to start weeding yourself from the crack darlin.

So where do you see the stock market at end of 2014?

Come on someone starting a "told you so" thread about the stock market (after a single drop day lol) surely has an opinion.

If Democrats win both sides of Congress, just below 17. If Republicans keep their majority as the have today 17, possibly 17,500 to continue our disproportionate income climb.

 

[Dad2three]

It's not about the 2% at all. It's about the WHY. Do some research on the WHY.

I already stated the why....good labor report=QE easing...fears...

And what happens after the easing...which I kiddingly call weening from crack. What happens to interest rates for example?

You mean the interests rate spikes and inflation around the corner conservatives have warned for years about?

 

[Dad2three]

Moon, my friend, you do this a lot. You look at just one or two variables when you need to be looking at a whole bucket of variables.

And no good labor news is not always bad for stocks.

Investigate the part about interest rates starting to go back up. That's the scary part. Do you realize how even the smallest rise in rates will have a huge impact on our 17 trillion of debt?

Higher interest. less debt

Just the opposite. Our debt just got more expensive.

YET we still pay less today (total interest) than we did in 2007. Go figure AND BARELY MORE THAN IN CLINTON'S LAST YEARS...

National debt of the United States - Wikipedia, the free encyclopedia

 

[Toro]

Well, look at that.

Just like those of us who actually understand the market predicted.

All that artificial driving up of the stock market numbers we kept warning about? Well, we told ya, what goes up, must come down.

And we warned ya that once there were "signs" of an "improving" economy, the crack heads would have to start weening themselves from all that free money pushing up the stock market. Well not free, but with zero interest rates, almost free.

Ooops, in Obama's fucked up Bizzarro World, good economic news is bad news for the stock market.

This is the watershed event. Watch smart investors start to slowly pull out.

It's still a bull market until there is evidence otherwise, of which there is little.

I have been re-establishing positions, and will continue to do so on pullbacks.

 

[Wildman]

Well, look at that.

Just like those of us who actually understand the market predicted.

All that artificial driving up of the stock market numbers we kept warning about? Well, we told ya, what goes up, must come down.

And we warned ya that once there were "signs" of an "improving" economy, the crack heads would have to start weening themselves from all that free money pushing up the stock market. Well not free, but with zero interest rates, almost free.

Ooops, in Obama's fucked up Bizzarro World, good economic news is bad news for the stock market.

This is the watershed event. Watch smart investors start to slowly pull out.

it's time to buy GOLD.., it's down

 

[Toro]

Is there any stock market "crash" or "correction" where the stock market was valued less than it was valued 10 years previous to the "crash" or "correction"?

Stocks are very expensive right now. What stocks were valued at a decade ago doesn't matter.