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Why the Stock Market Should Crash
Seeking Alpha ^ | November 16, 2009 | Charles Hughes Smith

Posted on 11/17/2009 3:25:59 PM PST by arthurus

I'm not saying the stock market will crash, only that if it had any relation to the real U.S. economy that it should crash, and soon.

The current politics of experience is so warped by misleading statistics and orchestrated propaganda that it feels strange to state the obvious and find it is "that which cannot be spoken" -- the credit-dependent, consumer-dependent U.S. economy is going down, and going down hard, and the trillions of dollars borrowed and spent by the U.S. government and Federal Reserve to crank up a recovery have failed completely, utterly and totally.

(Excerpt) Read more at seekingalpha.com ...


TOPICS: Business/Economy
KEYWORDS: economy; mania
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Even for the Keynesians, the government actions are all wrong.
1 posted on 11/17/2009 3:26:00 PM PST by arthurus
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To: arthurus

As for me I am loading up on old silver coin and buying a sailboat. This baby is coming down hard.


2 posted on 11/17/2009 3:28:48 PM PST by screaminsunshine (!!)
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To: arthurus

wall street is expecting another bailout from obama.

if you are well POLITICALLY connected they will give you free money and “police protection.” (and when they become inconvenient, a blindfold and cigarette)


3 posted on 11/17/2009 3:31:21 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: arthurus

Yep.


4 posted on 11/17/2009 3:33:22 PM PST by unkus
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To: arthurus
He shoulda stopped at the first clause...

Is policy on the part of the dems stoopid? Sure. Will it crash the US economy? Nope. Or the market? Nope.

If policy perfection were a requirement for economic anything, we might have policy perfection as men like this seem to hope, from the feedback training people up. (More likely, we'd have an economic mess).

But the reality is, bad economic policy and decent economic performance are perfectly compatible and indeed par for the historical course.

That just isn't any fun at all for the doom mongering crowd, and provide much less leverage to demand one's preferred policies be implemented immediately, lest doom follow. The prescribers can't win an actual election and try to make up for it in screeching - but it never works.

5 posted on 11/17/2009 3:33:26 PM PST by JasonC
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To: screaminsunshine

Where do you buy the old silver coins?


6 posted on 11/17/2009 3:33:30 PM PST by Conservativegreatgrandma (Al Franken--the face of the third-party voters)
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To: screaminsunshine
As for me I am loading up on old silver coin and buying a sailboat. This baby is coming down hard.

You might need a fishing rod too, but others are buying lead. I think lead will be more valuble than gold.

7 posted on 11/17/2009 3:35:25 PM PST by Mark17
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To: arthurus
only that if it had any relation to the real U.S. economy

Since when does the stock market have any relations to the real economy.

8 posted on 11/17/2009 3:37:15 PM PST by org.whodat (Vote: Chuck De Vore in 2012.)
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To: Conservativegreatgrandma

NW territorial mint


9 posted on 11/17/2009 3:37:31 PM PST by screaminsunshine (!!)
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To: Mark17

Let them eat lead. Ha Ha. I rather be chillin in lower latitudes to disrupt the supply lines.


10 posted on 11/17/2009 3:39:08 PM PST by screaminsunshine (!!)
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To: Conservativegreatgrandma

http://www.investmentrarities.com/silver_coins.shtml

They sell bags of pre-1964 US coins with 90% silver content. Old dimes, quarters, half dollars.


11 posted on 11/17/2009 3:41:09 PM PST by hinckley buzzard
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To: org.whodat

100% of the time.


12 posted on 11/17/2009 3:45:08 PM PST by balls (Fight the global warming scam)
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To: screaminsunshine

For me ; Old 90% silver coins, canned goods, ammunition and as much diesel/kerosene as I can safely store.


13 posted on 11/17/2009 3:47:24 PM PST by CarmichaelPatriot
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To: arthurus

The market is up on a down dollar. People have to put their money somewhere. It’s a bubble that is going to pop soon. Better to put your money in silver or even real estate while it is at rock bottom. Start thinking about a barter economy, bulk foods, firewood, fresh water, firearms. Looking at the people in charge, it appears things could get very bad, basic survival level bad, kind of B rated, apocalyptic movie type bad. That’s just my opinion. The state media is convinced Obamao has saved the day. I think he and his goons are Marxist idiots, intellectual blunders, and this country was foolish to elect him. Now we are going to pay for it.


14 posted on 11/17/2009 3:48:29 PM PST by pallis
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To: TPluth

I am half an half. Cash an silver. Be Prepared.


15 posted on 11/17/2009 3:54:44 PM PST by screaminsunshine (!!)
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To: arthurus
Said this before that the stock market is not an indicator of our economy, which is in total failure. We will be an depression very shortly and then a crash that would make the great depression seem small. This depression will take America down so far that we may never recover because it will involve world economy..
16 posted on 11/17/2009 4:00:57 PM PST by Logical me (Oh, well!!!)
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To: pallis
The market is up on a down dollar. People have to put their money somewhere. It’s a bubble that is going to pop soon

The market has some bubble qualities, but is pretty well valued based on estimated earnings. Of course those estimates are pretty high in some cases (e.g. consumer) but perhaps not high enough in a few cases (materials, resources). Remember that the Fed has said in the past that they believe the market can drive the economy to some extent and this is one of those cases where they are testing out their theory.

Mainly though, the market is a reflection of an inflationary bubble being created by the Fed. That's why they haven't bothered (much) to smack gold down. The Fed wants inflation and a lot of the market players like inflation especially the speculators. As long as the inflationary bubble is in place, the market will keep going up, as irrational as people might think that is. Then the Fed will turn around and tap the brakes and the various inflationary bubbles may pop, especially the carry trade. The Fed will try to ride in the middle but really that means copying Japan.

17 posted on 11/17/2009 4:06:56 PM PST by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: Logical me
We will be an depression very shortly and then a crash that would make the great depression seem small

The Fed realizes that of course which is why they are promoting an inflationary bubble. They have lots of ways to keep the money flowing and create bubbles everywhere (especially overseas via carry trade). They will keep doing that as long as they need/want to like early 2008. This time they may try to stop before $140 oil, but maybe not.

18 posted on 11/17/2009 4:11:19 PM PST by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: arthurus

Obama says the stimulus has done everything it’s going to do even though only a small percentage of it has been spent....

I’ll bet he uses the rest of the stimulus as a bailout for the too large to fail crew.

We’re in really big trouble folks... like anyone on FR doesn’t already know that... ;-)


19 posted on 11/17/2009 4:21:38 PM PST by NotSoModerate
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To: Conservativegreatgrandma
Where do you buy the old silver coins?

Find a coin dealer or you can get them on line(www.goldeneaglecoin.com is one place). Coin dealers are better. Get the ratio on line- that's the multiple of face value that = the price of the junk silver(old silver coins) before you go to the coin dealer. You will pay a small premium on the value of the coins. The value is a little lower for Canadian coins.

20 posted on 11/17/2009 4:34:44 PM PST by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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