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To: Salt'n'Peppa who wrote (156707)9/9/2011 7:08:33 AM
From: Bearcatbob5 Recommendations  Read Replies (2) | Respond to of 206093
 
IMO an announcement of an executive order to approve Keystone would have done more than the entire speech. It would be a clear signal of a change in attitude that America is again open for business.



To: Salt'n'Peppa who wrote (156707)9/9/2011 10:09:21 AM
From: Kayaker5 Recommendations  Read Replies (1) | Respond to of 206093
 
<< There are a couple trillion dollars waiting on the sidelines for good things to happen and for a reason to flow back into the markets. >>

I've always understood the idea of "cash on the sidelines" to be a fallacy. If someone with cash (on the sidelines) buys $1000 worth of stocks, someone else has to sell those stocks and move $1000 OUT of stocks into cash.

....First, we should be very clear that there is no such thing as money going into or out of a secondary market. When stocks are issued in an IPO, or bonds are floated to investors, companies receive funds from investors and, in return, give investors pieces of paper called stocks and bonds, as evidence of the investors' claim on some future stream of cash. This is a “primary market” transaction.

Once those pieces of paper are issued, they are traded between investors in the “secondary market.” When we talk about the stock market, we're talking almost exclusively about the secondary market, because new issues make up a very small part of total activity.

Dear Wall Street analysts and financial reporters – when investors purchase a stock in the secondary market, the dollars that buyers bring “into” the market are immediately taken “out of” the market in the hands of the sellers. It is an exchange. This is why the place it happens is called a “stock exchange.”....


section: The "Money Flow" Myth.
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