As of 3:43pm the Dow has dipped more than 470 points!
Now I have no proof, but it just seems like the Fed has been pumping money in the stock market since the downgrade of our credit rating. Little bits here and there, just enough from keeping it from going over the edge. I could be wrong, but having been watching the Dow since the credit downgrade I have gotten this sick feeling that tax payers are propping up the stock market.
While I can not seem to recall the article I read awhile back, I seem to remember something about the Fed claiming to make stock market injections less public because naturally it would throw off the balance and be counter productive. If it is proven the Fed is propping up the stock market I would consider that to be going too far.
The market will go up and down, thats a given. It could rally tomorrow some 600 points. The point I am making here is that I feel a major crash is on the horizon in the near future. Many banks have been downgraded, along with Americas credit rating. I feel the effects of this have yet to be felt, and it's possible the reason it has not been felt is due to possible Fed intervention.
What do you think?
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What is to give light must endure burning -- Viktor Frankl
Well, the Fed does own a lot of bank and housing stocks that otherwise wouldn't have found a buyer. What the fed has been doing lately is called "quantitative easing" which essentially means buying treasury bonds (US debt) so the treasury has enough liquid cash to pay our bills when other countries stop buying our bonds. The fed has already done 2 big treasury purchases. They are just about to buy another 400 billion in US treasury bonds to help replenish our national checking account. This is money that will have to be paid back, and yes, essentially this is the same thing as monotizing the debt - which decreases the value of our currency.
I don't like quantitative easing either, but until we change our tax policies, and trade policies for that matter, we are going to keep running red ink, and eventually the Fed may become the only customer for our debt, which will mark the day when the era of the American empire is over.
It doesn't have to be this way though. All we need is a congress that cares more about sustainable government than corporate wellfare.
Meanwhile after an almost 400 point drop yesterday MSDNC is making the claim that the stock market is inching upwards, up 34 whole points as of 2:16 PM! LOL
I think there was a little quantive easing going on yesterday, normally when the stock market tanks like that, it does not just start turning around late in the day.
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What is to give light must endure burning -- Viktor Frankl
Well now the market is back up above 11,000 again... A little rally if you will of about 400 points.
Gas is down to $3.59 a gallon around here (Premium), and if we could see $2.80 per gallon (Premium) even I would be impressed. Seems an Obama Campaign always brings low gas! Strange isn't it? Two weeks ago I paid $4.09 cents a gallon.
Then again we need the market to stay under 11,000 to see $2.80 gas, and the market could tank another 500 tomorrow. Boy am I glad I dont have any skin in that game! No 401K to worry about, no stocks... I honestly dont know how people do it.
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What is to give light must endure burning -- Viktor Frankl
IIRC under Bush at one point the DOW at a record (for his term) of 14,000 points!
Then of course it did hit a low in the high 7,000's but that wasn't until Obama and the doom and gloomocrats started dragging down the moral of the country in an effort to steal the White House.
I wonder how much longer they can keep proping up the economy? I guess forever since everyone prints their own money and there is no longer any real backing behind the paper.
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What is to give light must endure burning -- Viktor Frankl
WHY DOES REX GIVE A FUCK ABOUT THE STOCK MARKET????? HIS BROKE ASS IS TOO POOR TO THINK ABOUT INVESTING................... HE BARELY SCRAPES BY PAYCHECK TO PAYCHECK AND DEALING IN ILLEGAL FOODSTAMPS!!!!!!!!!! I BET HE DOESN'T OWN A SINGLE SHARE IN ANYTHING.................... PUNK ASS BITCH!!!!!!!!!!!
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LIKE A PHOENIX RISING FROM THE ASHES.................... HERE TO SHIT ON REX!!!!!!!!!!!!!!!
