Since everyone on the television was blaming the Congress, and not underlying economic reality, for the stock market’s price declines, I anxiously wait the same people’s giving credit to the Congress for this morning’s bargain-hunting upturn. Or is this because of Bush’s inspiring speech and the Fed’s promise to print more? The propaganda is so thick that one can barely breathe.
{ 10 comments }
a promise wasn’t required…that’s just what they did:
from daily paul (http://www.dailypaul.com/node/65100):
“The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression”…
Bloomberg: http://www.bloomberg.com/apps/news?pid=20601087&sid=aD8ILDu0nEkE&refer=home
On Saturday Congress passed H.R. 2638 (Department of Homeland Security Appropriations Act, 2008 ) for a whopping $634B…
CNN Money: http://money.cnn.com/2008/09/27/news/economy/spending.ap/index.htm?cnn=yes
maybe that has something to do with the temporary and artificial spike in the market.
Would anyone care to speculate why the dollar is doing so well. The Euro is tanking and Gold and Silver are down about 2 and 5% respectively.
Ron Paul as well as other Austrians have talked about the dollar being destroyed with all of this credit creation but so far it goes the other way.
Anyone suprised by this price action thusfar?
Since the stocks with the highest gains are all banks mentioned over and over again in every newspaper for their liquidity problemes, what you see above can only mean that the bailout plan will be adopted one way or another – and very soon.
I have this idea that fiat money ultimately fails because of basic math and human nature. The power to inflate is simply too tempting for mere humans to ignore. Inflation works for a time, but ultimately the mathematical reality of currency debasement becomes too apparent to be ignored, and the fiat regime crumbles.
I think this is what we witnessing right now. The silly bailout bill, and the sillier bailout bills that are certain to follow, will only hasten it.
Perhaps we should cheer.
Dirk, it’s because of marketing. The same reason Microsoft can sell anything.
Inflation doesn’t hit everyone at the same time. As the new money flows into the system, prices will rise. The money has still not made it into and through the system.
Yet.
“Ron Paul as well as other Austrians have talked about the dollar being destroyed with all of this credit creation but so far it goes the other way.”
“so far.” that’s cute. you were born yesterday, then?
Oh, already, the press is at it: Mixed markets are a sign of hope for a bailout.
Since when has national policy been entirely about keeping stock prices as high as possible?
“so far”. no i wasn’t born yesterday jon, but the Austrians and R.P. have been saying this for years now. With the breakdown in the credit markets and the huge liquidity dump I think many austrians would have expected gold and silver to go up alot.
Of course it takes time to work through the systems however markets are very forward looking and tend to discount the future pretty well.
So far the market with regard to the metals has not ramped, interest rates are at rock bottom signaling little to no inflation and the dollar has held in.
I was asking if anyone had any insight into the market reaction thus far.
Does it not surprise you? If this is not a catalyst for dollar depreciation I don’t know what is.
Dirk,
You should look on this as a window of opportunity. Helicopter Ben pumped $630B into the markets to prop them up, with foreign banks sucking much of it up.
The market often reacts this way after a big decline. The question is, how long will it last? Austrians don’t put time tables on things like this, as markets are way too complex to analyze in terms of one event. The trend, however, is unchanged (even with the bailout).
Use this window to get your crap together.
Dirk
Yes they have been saying it for years and in the last five years the price of gold has gone from $400 per troy once to close to $1000. A barrel of light sweet crude was around $30 in 2003 and now is just under $100. A bushel of wheat is up from $4 in 2003 to around $9.25 today.
Comments on this entry are closed.