Don’t listen to conservatives for stock advice
I’m not suggesting that Obama policies alone are driving the stock market. Many factors, particularly earnings, drive the overall market.
But, many conservatives were quick to blame Obama when the market slipped in the spring, implying he was to blame as opposed to the economic crisis he inherited. Melissa Francis and some of the other conservative market worshipers at CNBC were just a few of the examples. Well, the market is now up, and we’re not hearing conservatives talk about it much any more.
The stock market. What a true measure of economic health it has become, eh? Once again, market manipulation via pouring dumploads of ill advised printed lucre masks the state of market and economic decline. Oh yippee the market went up! That means I can pull that gain out in 50 or more years and be taxed to hell when I do! I’m sure all the laid off blue collar workers here in the buckeye state are feeling really awesome about that. I am sure that the banks will accept an i.o.u. for mortgage payment backed by their IRA growth. So what happens when our version of the retiree tsunami occurs and rather than overwhelming the great society entitlements we overwhelm the market taking our funds out. Maybe by then the cradletogravecare dream will be realized and not only will I not have to work but I will not have any bills to pay with that hemplaced paper we keep on churning out. More likely by then the hemp containing paper money will serve me better by smoking it. Ah heck, I’ll just stick my kids harder than my parents did me.
Soliemon: You nailed it. Share appreciation since the advent of 401k’s in the 80s has had relatively little to do with Corporate performance and far more to do with “supply and demand”. With billions of new dollars chasing stocks every month in the 90s traditional measures like PE ratio were thrown out the window.
You’re right, when baby boomers start to retire, the drop in share values caused by the liquidity crisis will pale in comparison to the drop caused as the ponzi scheme falls apart.
Has the Madoff money losses been already priced in? Has the effect of this guy setting up the nasdaq and other market machinery even been felt? Will it? Probably not…what a sham it still is.