Market WrapUp (07-16-03)

Financial Sense Online ^ | 7/16/03 | Jim Puplava

[arete]

Other considerations include “dropping money from a helicopter” option. The Fed is considering actually purchasing real goods and services. Since its present charter does not allow for this it would have to coordinate this policy with fiscal policy makers. It would involve having the government purchase goods and services which it would finance with debt. The Fed would then buy that debt by printing money out of thin air. This is what is referred to as “monetizing debt.”

The government is already dropping money all over the place. How much more will they hand out?

Richard W.

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[arete]

Market WrapUp is Delivered!

Today's Roger Arnold Show

Richard W.

[Lazamataz]

I don't have the time to digest all this. Are we screwed or okay?

[superloser]

> The government is already dropping money all over the place.
> How much more will they hand out?

More to the point, what will the inflation rate be once the economy as a whole catches up to this and realizes it?

Why does it feel like the beginnings of Weimar?

[Cool Guy]

Jim Puplava is in the "we are screwed" camp.

[lelio]

inflating their money supply leading to credit expansion and asset bubbles in those countries, i.e. Japan, Mexico, and Asia. In addition to creating bubble economies overseas

You mean I can pick up some cheap real estate in Thailand soon?

[balrog666]

I don't have the time to digest all this. Are we screwed or okay?

We're screwed. But really slowly ...

[arete]

You are going to die.

Richard W.

[Lazamataz]

You are going to die.

Damn.

[shrinkermd]

NEW YORK (Reuters) - Fannie Mae (NYSE:FNM - News), the largest U.S. mortgage financier, said on Tuesday its quarterly earnings fell 25 percent because derivatives it uses to hedge against interest rate swings lost $1.9 billion in market value…-END-

[imawit]

Does this sound right to you.

1.9 Billion lost equals one Quater of their earnings per Qtr. That means they earn 32 Billion per year and I would guess pay no taxes and also don't have to have this profit publicly certified.

I still say they're in trouble and more than they are letting on about.

[Risa]

I wonder what the implementation of the Bush Administration's extreme form of free trade theory and social policies have to do with this. (Clinton's, too, just slightly less sweeping).

[arete]

The use of a fiat currency system is nothing more than an invitation for political abuse by all politicans. The FED was supposed to moderate that abuse, but now with the total corruption of Greenspan, the flood gates are open wide. Washington will drown the whole country in debt to fulfill the vote buying and supporter pocket stuffing agenda. Treasury won't be able to print money fast enough to keep the paper mountain of IOU's standing for much longer.

Richard W.

[Beck_isright]

"I don't have the time to digest all this. Are we screwed or okay?"

To summarize: Lube up.

[Beck_isright]

"Why does it feel like the beginnings of Weimar?"

Perhaps it is the "radical" redesign of our currency upcoming, including the re-introduction of the $2.00 bill. I'm sure the $10,000, $50,000, $100,000, and $1 Million bills are not far behind. Just start remembering the nutritional value of turnips and you'll be fine. Just like 1931.

[Beck_isright]

"NEW YORK (Reuters) - Fannie Mae (NYSE:FNM - News), the largest U.S. mortgage financier, said on Tuesday its quarterly earnings fell 25 percent because derivatives it uses to hedge against interest rate swings lost $1.9 billion in market value…-END-"

I like the other headline from CNBSNBC at 1500 where the hearings on Fannie and Freddie were cancelled because of a lack of "cooperation" from the GSE's. Gee, that's re-assuring as hell, isn't it...

[Trajan88]

Couch-Potato* investing folks... 50% Vanguard Total Stock Market Index & 50% Total Bond Market Index... over the long-term beats something like 70%+ (maybe more) of all actively managed funds.

If you want to trick it up a bit... 65% stock index and 35% bond index. This is how my Roth IRA is set up.

* Courtesy of Scott Burns of the Dallas Morning News.

Peace in the Middle East and Piece in Midlothian, TX!

Trajan88; TAMU Class of '88, Law Hall (may it R.I.P.) Ramp 9 Mule; f.u.p.!

[Beck_isright]

"65% stock index and 35% bond index. This is how my Roth IRA is set up."

So when you lose 60% of the 65%'s value and 70% of the 35%'s value, how will you set up your Roth then? Of course that assumes the government will not abolish Roth IRA's in a banking crisis when the hedge funds collapse. Read the history of the Blue Ridge Corporation and let me know how secure you feel about your Roth then.....

[ambrose]

Well if his IRA collapses and everything goes to hell, he can run to the hills of Idaho with his shotgun and eat road kill for dinner.

C'mon, what is it with you doom 'n gloomers?