The market reviving for a time is just an interruption of down we go, we have date with DOW 5900 for our NEXT low .
Also JQP is NOT an ingredient is this market, JQP has left the building.
i heard some nmarket hypest say they will have to re-enter equities becausese they do not have enought to retire.
i have stated for years the plan to finance peoples retirement via the stock market would eventually be recognized as but a hype idea to create an industery the that FED OFF commissions.
That 55% of American households should have put their retirement plans into equities was to put a loaded gun to its
head.
i have written oft that households in the stock market ranged JUST between 5 -10% from 1930 and to about 1985, with 1929 mania being JUST 20% of U.S. households.
See it is about those magnificient IRAs ad 401ks except the significant majority don't know how to handle 401k and IRAs, these plans now are are beating up, savaged and are actually leading to a great depression.
A country that bet it's future on a Casino, is asking for it, and they are getting now beginning to get ----- we are learning our alltime historical good times in the entire history of the world was based the on greed based financiers to grow a society via the stock market, where the runners of the systenm are actually leeches.
i remember with HORROR where many posters on SI way back, thought Chainsaw Dunlop was a GREAT MAN(he was an evil bastard, anfd that should have been OBVIOUS). i was to see a lot of those posters vanish forever as they got wiped out in the year 2000-2002, never to be heard from again
Keynes said any country that bases its economy on the stockmarket rather than the stockmarket on its economy is headed to disaster.
Well that is what we did, and in doing so we created all kinds of shady earning calculations plus for first time in history based the proper P/E for a market based one year forward, another insane ticket for both disaster and rampant corruption.( The SPX500 P/E you here on CNBC and BTV are still BS P/Es---Swenlin site let's you see the real P/E--and he says, accounting for the next 2 quarters a fair value of 318!)
<<BUT, IF they can tie the markets revival to forgiving these asshats sins, it may just work>> It is our sins, the hucksters selling and the stupidity of people to buy into FINANCE AMERICA via the stock market and the credit card and mortgage refinancing, and so on.
People say there be huge amounts of money ready to pour into the market, a market that lives and dies on consumption mad debtor based society.
Well consider this.
In the last 3 months U.S.HouseHold wealth FELL 5.1 trillion dollars and 11.1 TRILLION for the last year.
People are really ready to start pouring their money back into stocks when this MARKET will only be SWINGTRADING DOMINATED, and at least 90% of investors have no damned idea how to SWINGTRADE. But the big institutionals are more and more going to swing and scalp while JQP(the foundation of are consumer dependent economy) will getting hammered over and over again.
TooEarly the Big Top has burned to the ground, the clowns have left down, a whole new world is ahead, and as Leonard Cohen prophetic song announces " I have seen the future and it is MURDER".
To BENWOOD, i do say agree yes this rally will be but mild but i feel NOT because they are not systematically doing all they can to 'win the public's trust back" , BUT IT WILL BE MILD BECAUSE THE PUBLIC'S TRUST WILL NOT COME BACK.
We were a phony economy based on Madison Avenue/WallStreet "spirituality", with the investment world being conjurers of a fluff system that like the cons they are had the gullible believe it was built on concrete.
i have a good friend that work on the inside of a big brokerage and he said there prime directive in life was to separate the public from their money.
America TooEarly has been robbed, , now we are pouring trillions into the financial system, the world of High Finance, the idea being they can they get people back to consume consume and BUY BUY houses , drive the prices up.
These dollhollowheads have a smug belief that it will all be up and running again.
Do they comprehend 11.1 trillion(probably a CONSERVATIVE figure) is GONE, and that will grow.
i am quite serious i could spend a month and write a hundred pages to present all the fractures through out the world, and why they will widen and widen, it is ONLY the fact people can get giddy on a some momentaries of upward movement, that the doomsters will lose the addition of the hopesters.
People are programmed to get into "O WOW, i am feeling better today, all will be well"
Sadly, hope is ALL They Have.
i myself do swingtrade, i myself know how to survive, but frankly, wealth through stock market is BS for those many and that they were never meant to survive through the stockmarket.
Those that i call the survivors, that have been posting here 8 to 11 years, know damned well the stockmarket will chew you up a spit you out if you don't know what you are doing.
90% of "investors" that say they can understand investing, put them to the test and you will see they are in a delusion, how many investors knew what derivatives were,for instance, or their danger, i would say maybe 5%.
JQP have been burned over and over, their is a limit to this phony economy can surviving, because its survival depended on all the sheep to be fleeced to believe.
i have lived through the most most self satisfied domesticized think toys think New Age Angels protect your finances; a world where some outrageous huckster can write a MASSIVE BESTSELLER called "The Secret" which is utter rubbish and Gawd knows Oprah will be out there feeding this utter BS, assisting the con hucksters succeed, because INCREDIBLY many many actually believe that crap.
i measure the overall intelligence of our nation and can then see where we are headed, and the direction is bad--but i having saying that for a long time. Why a longtime?
It will be slow, it has been slow, but believe me for every forward step there is 1.5 backward steps, the forward steps are away from a abyss like 10 miles away, and each 1.5 strps is to the egde of the abyss, this is THE FUTURE, it is locked in.
Faber sees destructive conflict building between China and U.S., if that happens we may get a sudden giant step back and into the Abyss.
i was born in 1941, i was told humanity was a rational being moving to a world of peace a prosperity world wide.
For 67 years now i have learned ONLY those that think that is what is happening are living in some dream world.
But we, in the U.S. thought getting a 7 thousand dollar barbecue in the backyard was a measure of the advancement of Humankind, but then many americans can't think beyond there backyard .
Now those backyards are getting endangered, and that barbecue still isn't paid form, the wall HDTV isn't paid for, yike some don't have enough for this year, let alone for retirement.
O my, could this American Dream have been HOLLOW???????????
Shoot that man, put him up against a wall and kill him, the unpatriotic bastard, suggesting the American Dream is HOLLOW
That's a rap.Max
P.S.
Here is a read
March 13, 2009
Household Wealth Falls by Trillions
By VIKAS BAJAJ
In the last few months, most Americans have felt poorer. Now they have the numbers to prove it.
The Federal Reserve reported Thursday that households lost $5.1 trillion, or 9 percent, of their wealth in the last three months of 2008, the most ever in a single quarter in the 57-year history of recordkeeping by the central bank.
For the full year, household wealth dropped $11.1 trillion, or about 18 percent. Though the numbers do not yet reflect it, the decline in the stock market so far this year has probably erased trillions more in the country’s collective net worth.
The next biggest annual decline in wealth came in 2002, when household net worth fell 3 percent after the collapse of the technology bubble. The most recent loss of wealth is staggering and will probably put further pressure on the economy because many people will have to spend less and save more.
Most of the wealth was lost in financial assets like stocks, which tumbled at the end of last year. The Standard & Poor’s 500-stock index, for instance, fell 23 percent in the fourth quarter. The value of residential real estate, the biggest asset for most families, fell much less — $870 billion, or about 4 percent.
Even the richest among us have become a lot poorer. This week, Forbes magazine published its list of the richest people in the world. At No. 1, Bill Gates, the founder of Microsoft, still had $40 billion to his name, but that was down $18 billion. The wealth of Warren E. Buffett, the investor whose company Berkshire Hathaway had a rare bad year, tumbled $25 billion, to $37 billion.
The loss of wealth is concentrated among the most affluent Americans, in large part because they own more stocks and bonds than the rest of the country. Only about 50 percent of households own stock, and many of them own relatively small sums in retirement accounts.
As a result of their greater wealth and higher incomes, the affluent tend to spend a lot more than their share of the population would imply. The top 20 percent of income earners spend more than the bottom 60 percent of income earners, according to calculations by Tobias Levkovich, the chief United States equity strategist at Citigroup.
“When their wealth is mauled, they are not particularly interested in spending,” Mr. Levkovich said.
The Fed report released on Thursday also showed that total borrowing and lending increased at an annual rate of 6.3 percent in the fourth quarter, mostly as a result of increased borrowing by the federal government to finance its operations and various bailouts of the financial system. The government’s borrowing increased at an annual rate of 37 percent.
But borrowing by households dropped 2 percent. Lending to businesses was up 1.7 percent. Recent surveys of loan officers by the Fed have shown that companies have been drawing down lines of credit that were established in the past, and that only a small fraction of the lending to the private sector is through new loans, which are much harder to obtain than in recent years.
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