What The Stock Market Is Saying

townhall.com ^ | November 12, 2008 | Philip D. Nathanson

[cal08sun]

The stock market is sending two messages. First, it is voting no confidence in the bloated "New Deal" remedies of Ben Bernanke, Henry Paulson and Congress that are causing an economic downturn. Second, it is saying that the real economic cost of the bailout will be much greater than the projected $700 billion in direct expenditures. We face years of government interference via credit allocation, pay scale determination and a host of explicit and implicit new regulations. All will lead to a massive mis-allocation of resources. The U.S. stock market has fallen about $5 trillion in value the past two months. This is its estimate of the direct and indirect costs of the current "rescue" program.

[bert]

......Then he’ll get a keynesian and send us into a serious hyperinflation......

We will not have hyper inflation, merely carefully controlled inflation at something less than 7%. At that rate the problems will be solved by the doubling of the economy in about 10 years..

It is the age old solution from truly ancient times. It is always the course rulers follow.

[RipSawyer]

There is not a dimes worth of difference between Bush’s republican party and Obama’s democrat party.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

When Hussein starts appointing judges you won’t say that.

[bert]

I know you like many here dislike Walmart for reasons I can’t understand, but you miss the point. He completely disrupted American business and revolutionized the relations between those who make things and those who sell things. Walmart is a truly great success story.

He did not just buy low, he created low. His successors followed the path and improved it to the point there are no equals.

[Mythbuster1]

The stock market is sending two messages.

Actually, there is a another. People who can are bailing out of 401ks and IRAs before they are confiscated.

The Obama administration will simply confiscate all 401ks and IRAs and tell the public that there are not enough “safe” investments for all that money so they will buy “safe” U.S. Treasuries with the money. Shades of the Social Security scam.

How remarkably simple it will be to pay for all the current borrowing and fund new programs using the people’s savings.

And Americans thought economics was complicated? Not any more.

[GOPJ]

By the time we get to the point where we KNOW where money is needed to keep the economy going - we'll be broke.

This bailout stuff is, at one and the same time, not enough - and too much. God help us.

[muawiyah]

But I like Walmart. All I said is that long before Walmart came along people engaged in commerce. Been going on for thousands of years right under your nose doncha know?

[muawiyah]

That’s what I said, for the “good of humanity”. Did you have some other idea of what profit was about?

[HANG THE EXPENSE]

The cities will be destroyed.What exactly is the downside to that?I’m only half kidding.

[muawiyah]

Why? Frankly, I think contracts are sacred and that management makes an implied contract with the worker when he is first employed. One of the items in that contract is that "we won't kill you", and another is "we won't try to cut off your parts".

Any rational management should be able to live with that.

[muawiyah]

We had what amounted to a 50% gain in the economy over the last 10 years without even accounting for "growth" ~ just productivity improvement.

That's why it will take longer than you project at 7% inflation to get back on an even keel.

[BRL]

No it has not. It never had that 'value' to begin with.

Ding Ding Ding

That lady wins a prize

It is like a huge game of musical chairs and the music has stopped and now people are realizing that there are not nearly as many chairs as everyone thought.

[dalereed]

“Did you have some other idea of what profit was about?”

You bet, I could care less about the “good of humanity”.

[HANG THE EXPENSE]

How much of that is junk mail? Seems all I get is junk mail oh and the bills.

[muawiyah]

You are not human? Could’a fooled me.

[muawiyah]

The direct mail advertising people try to get anywhere from .5% to 2.5% response rates on their mailings.

That means you may have an interest in anywhere from 1 out of 40 pieces to 1 out of 200 pieces.

[brydic1]

By the time Jan 20 comes around, at the rate we are descending into a collectivism under GWB the US will already be a socialist state in the midst of a depression. Obama’s appointments will no longer matter. Conservatism is going to be blamed for this catastrophe even though GWB has not the slightest idea of what constitutes conservatism and certainly did not follow it's principles. The American people turned on this most incompetent administration since that of Herbert Hoover and witnessing this incompetence, neither George Washington nor Abraham Lincoln on the republican ticket would have changed the result.

[muawiyah]

Don't even think of anyone blaming the Obama Depression on anyone but Obama and the Democrats.

This thing started right as he made all his threats of ruinous taxation against business and the professional classes.

It's all Obama's fault!

[ari-freedom]

there won’t be any careful control of anything after a deflation.

[brydic1]

Continue drinking your koolaid. This catastrophe began years ago as this administration and its appointees continued the low interest rate, give away mortgage philosophy of the collectivists in the democrat party to those who could not possible pay off those mortgages to get votes just as the dems have done for generations. Bush and party just joined in the fun to secure the votes of the poor and the illegals because they believed there would be no consequences, at least until they were out of office.

They ignored every precept of classical economics which we believed they would defend. I sure do not defend the democrats, we all know that when the people elect those socialists what the result will likely be, but we elected what purported to be conservatives and they have stabbed us in the back.

[adorno]

Third, and most importantly, the market is signalling complete disbelief that the American people would vote for a Marxist of dubious lineage for the highest office in the land.

Exactly right.

The poor and the middle-class and the ignorant may have voted for Obama, but the people with the money who can make or break the economy, have been giving Obama a vote of "no confidence" in the last few months. Many pundits and economists have not been willing to place blame on Obama because he's not really president yet, but the investors are not willing to wait to show their concern about the new Marxist policies which will begin to take effect once Obama is sworn in.