Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (88716)	7/13/2009 3:04:32 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Yes, I agree on depression in the real economy. That does not necessarily mean lower markets in a corrupt environment and one with rather vigorous printing. That just means USA is now officially a Banana Republic. We just need to cancel elections to complete the process. FWIW, Zimbabwe has 95% unemployment and is dead last in the list of all countries in terms of GDP per capita. Their stock market is adding a 0 per month or faster - in local currency, of course. -g- Depends what goes down the toilet faster - the market, or the value of the currency. The Fed's "measures" have been quite unprecedented. They already guaranteed essentially all bad paper (North of 11 Trillion), promised to triple the monetary base (and are well on their way doing just that), and they are not done yet until we restrain them, since this economy is terminally ill and will not recover without a reform that actually breaks the link between the Fed and the banks, cancels derivative contracts, and flushes the system clean, possibly nationalizing and breaking up large "too big to fail" financial institutions. The most troubling sign is that their powers have been drastically expanded, as opposed to shrinking. They now "oversee" the banks, their masters. The answer is - the market will not go down if the Fed really does not want it to, but that sure won't change the real economic environment, and such manipulation will have consequences that are much worse than what would happen without it. A collapse of the country comes to mind, and it's really the next stage of the crisis. We are there. We used up the bailouts in the past shallow recessions.