How America works today:
Posted on 11/18/2013 8:14:17 AM PST by SeekAndFind
Stock market indexes are hitting new milestones on Wall Street.
The Dow Jones industrial average crossed 16,000 points for the first time early Monday and the Standard & Poor's 500 index crossed 1,800 points.
Stocks have been rising sharply this year as the U.S. economy improves, companies report bigger profits and the Federal Reserve keeps up its easy-money policies.
(Excerpt) Read more at abcnews.go.com ...
From Zero Hedge:
The only numbers that matter today are 16000, 4000 and 1800: those are the Fed’s closing targets for the Dow Jones, the Nasdaq and the S&P. Following last night’s Chinese euphoria which saw the Shanghai Composite surge by 2.87%, or up 61.4 to just under 2,200 on renewed hopes for Chinese reform by 2020, the Fed’s price targets should all be quite easily achievable.
And not even the rising home prices in 69 out of 70 cities year over year, and 65 over month - the same as last month, with new nome price inflation at 0.6% overall and 0.8% for the first tier cities, was able to put a dent in the reflationary spirits in the Mainland. Additionally, news that China would join the US and Europe in “adjusting” its GDP calculation method, which would add R&D expensing into the bottom line, and as a result boost the overall number, is, well, helping things.
Finally, with today’s POMO a rather whopping $3-$4 billion, it is only a matter of time before all three of the previously noted psychological resistances are promptly taken out by the Fed’s open markets desk.
“I will continue to rely on my financial adviser”
Not being smart, just wondering, did she see the 2008 crash coming?
Thank you qe infinity.
Wait till this SOB collapses. This is a repeat of the 1930s...worse.
Adjust 16,000 and 1,800 back 5 years for inflation and what do we get.
Record breaking height of...a house of cards.
Inflation via non-stop printing of funny money. The market is way over valued right now, it’s just riding the devaluation of the dollar. In reality, the numbers should be 1/2 to 1/3 of what they are with taking inflation into account. I would dump these stocks at their inflated values, and use that inflated value to buy up some undervalued tangible assets.
Oh Zimbabwe, here we come!
Ok I guess everything is great now. Depression over, 11 million new jobs created, housing market back on track. Yeah!!!!!!!
“I will continue to rely on my financial adviser, who is well trained in such things, and has an arsenal of resources to use within her company to help with my decisions instead of a bunch of people in FR who have never taken an economics course.”
WTH are you on this thread then, jerk!
There's the key. "Easy money" is only available to a certain segment of the country. In reality, the money is worthless. In perception, it has value. So until reality matches perception "easy money" can be used by that segment of the country to secure real wealth without risk.
The U. S. economy has not been improving. Action on the stock exchange is solely due to "easy money". And that action is just a giant smoke and mirrors show distracting the public from the very real transfer of wealth out of their pockets into the coffers of the same entities that always benefit from these government caused financial crashes.
Enjoy the show. When the curtains close the Republic dies and We The People will be government slaves.
I’m not so sure - stocks may be anticipating a repeal of ACA and a backlash against big government.
Yup..although the dollar is being printed like wallpaper, the same thing happened during the early 30s. And at that time we were under a gold standard-till FDR tried to make it illegal.
It is natural law that the thing will correct..how much? That remains to be seen. And again, you are correct, the whole GD thing will have been caused by government and the banking system we are under.
What will it be? Weimar style inflation? Or depression? That is the question.
ACA reflects a fascist relationship between Big Government and Big Business, so I don't think that's having much impact one way or another.
Here we go again! Numbers that are not adjusted for inflation are meaningless. Also, the fascination with numbers that end in zeros reveals a small mind.
Partially. Enough for me not to lose $1 of my 401k.
16,000 in 2013 is the same as 11,766 in 2000.
1800 in 2013 is the same as $1,323 in 2000.
“Stocks have been rising sharply “
The people who write these articles should not be writing these articles.
The numbers are higher, but the value lower.
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