The idiot markets (e.g., stock markets) have shot up this week in breathless enthusasim, over the prospect of the Greece bailout by the European Union. However, it may be a case of too foolish, too fast. There are other issues that still impede the bailout. Take for example the ruling today by German courts that German tax money may not be used to bail out Greece. This in itself may be a stopping point to the entire bailout.
The other issue that has not yet been considered is the fact that Italy, Ireland and Portugal are also in dire straits. Portugal's debt may be three times it's annual GDP by 2012. Once Greece is settled, then these nations may well clamor for a bailout of their own. Where will that money come from? You get the picture.
So while you look at the U.S. markets and marvel at the fact that they are going up, remember why they are doing it. It's all about the confidence game. They want to tell us what we want to hear, so that we will put our money at risk. Who profits from this? It definitely isn't going to be those in the market, in the long run.
Obama: Campaigning Like It's 1936 - Forbes
http://www.forbes.com/sites/merrillmatthews/2011/10/28/obama-campaigning-like-its-1936/
Obama is so vacant of any ideas of course he looks to another failed president like FDR.
Who didn't get America out of the Depression -THE WAR DID!
Posted by: Powerball | October 30, 2011 at 09:01 PM
Markets and many business not in the service sector will see their real estate and cash assets plummet when Bernanke releases the Q2&3 money that Bernanke has said himself is not yet in circulation; because it's in bank vaults to be released incrementally to fight inflation. As thing get worse into 2013, and all that printed money IS put into circulation, the Fed will need to raise interest rates and the government will raise taxes.
Right now the markets are simply playing to the headlines.
Posted by: Powerball | October 28, 2011 at 07:06 PM
From the super-success, Dennis! Good for you, though, documenting such bold predictions. But why, when US corporations are both highly profitable and flush with cash, would markets plummet?
Posted by: Shirley | October 28, 2011 at 04:53 PM
I agree with Sam hill.
The European economy (or lack thereof) has been "yo-yo-ing" our markets for the past 2 years. The greater problem is that the USA isn't any better. Watching the markets go up in this environment basically means that we are all being played. There will come a time, in the near future, when the global markets will crash. This crash will dwarf the Great Depression. This crash will happen just before the November 2012 General Election. Until then expect to see the markets continue to increase as financial news and statistics are manipulated by the media.
silver & gold buy as much as you can now
possession = 9/10
Posted by: Dennis | October 28, 2011 at 04:41 PM
Stop with you fear tactics. The markets went up yesterday because the US GDP moved up to 2.4%...Meaning the double-dip recession everyone has been talking about isn't going to happen.
Posted by: Richard | October 28, 2011 at 02:15 PM