Posted on 03/04/2013 10:58:40 AM PST by blam
Problem is, the "E" part is often pure accounting fiction these days, so the market's real P/E could be more like 100.
Indeed when the Federal Reserve stops printing $$$ it will look like 1929 two folld.
Steve Sjuggerud has not just swilled down gallons of the purple Kool-Aid. He’s swimming in a tank of it and absorbing it through his skin.
In the game of economic prognostication I am firmly entrenched in the glass half empty mindset. Good luck with the guess to whoever wrote this...
Of course the dow will rise just on inflation over time.
Current ~14,000 to 20,000 is 6,000 rise....6/14 +42% Definitely not inflation. If it is we gots bigger problems.
of course it could. Zimbabwe’s skyrocketed during hyperinflation, I guess it could happen here too
So true. I read statements that the dow should be over 20,000 plus except we are in bad times. It's rising with inflation but not where it should be. They're keeping interest rates low just so the service interest on the debt is same amount it was many years ago - which is less than what the service interest should be if inflation was taken into account. Interest rates can't go lower than zero, so this whole thing is going to blow up soon. Then the service interest on debt will crash it all, with hyperinflation. Fun times.
OR....... it could crash......
I not sure the stock market will be going up, but I’m pretty sure that the number of dollars needed to buy a particular stock, will be going up. Our whole economy is fake and a joke, and its all over but the revelation and the laughing.
Well you can’t tell people it’s going to tank...they’d freak out!
Someone mention not too long ago that we shouldn’t look to the stock market as a gauge of overall economic health.
That still hold true?
Not unless we know how much of that index has been bought with “created out of thin air quantitative easing” money.
It might be news if the market were the real economy at the level of the people. The number of people with disposable income to buy products and services is shrinking, the number of dollars left for them to buy these goods and services is shrinking and overall the number of dollars the average person who still has a job has available to invest in the market is shrinking.
We will before too long reach a point at which this facade can no longer be propped up.
I thought as much.
Now when do we SELL?
Oh, I don’t know...
How close to the ground do you want to be before you pull the cord?
Now I have read somewhere that since the Federal Reserve System was established, the dollar has lost 90% of its value. Accepting that as a working figure, today's Dow Jones Industrial Average in real dollars is 1,411.
If my memory, assumptions, and stubby pencil work are accurate; that means little real gains have been made since the Federal Reserve System was established. Again if I am correct, what we are seeing is the systematic plundering of the middle class's wealth by the purposeful debasing of our currency.
And remember, as specified by Article 1 Section 8 of the Constitution, Congress has the sole authority and responsibility; “To coin Money, regulate the Value thereof, and of foreign Coin...” Congress unconstitutionally ceded this authority to an illegitimate Federal Reserve System composed of private banks.
So, “We The People”; your Congress can't pass a budget let alone a balanced budget. And it has allowed a group of private banks to debase your currency for about the last 100 years to the point you have no real money. These conditions lead to not only a stock market crash but a currency crash.
And the crash is coming fast. When it arrives you will lose everything. Your fiat currency will be worthless. Taxes on real property will explode and you will have nothing to pay the taxes with. So your real property will be seized by banks and governments. And you will be beggars.
Remember the last time something like this happened? It was called the Great Depression. It took the Federal Government's illegal seizing of real money, gold, and a World War to come out of it.
Look to China and Russia. History is getting set to repeat itself. And we are in no position to prevail.
Interesting. Dow’s well over 14,000 now (over 14,100 even).
Way too close, I’m sure...LOL!
Beats taking a tens of thousands dollar beat down [or more] as before.
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