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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?

To: John Chen who wrote (44882)	10/11/2011 2:21:48 PM
From: Mike Johnston	5 Recommendations Read Replies (1) \| Respond to of 119361

The higher the stock market goes, the worse off 90% of population is. Even the ones that are long the market are really just breaking even. Some days shorts will get killed, other days longs. If they release a trial balloon one day that there are discussions about QE3 and decision will be made in 8 weeks , then you have 8 weeks of the market drifting higher in expectation of that. They can pin the market at any level they want. Last week it seemed that the Feds were willing to pull the plug (let go) and the market could go to 900-1000. Right now even a hint of QE3 will cause a melt-up. The prices in the market are no longer informative, because the only informed traders in the stock and bond markets are the ones with inside government information. Sooner rather than later consumer spending sans food will completely collapse. The market will be bifurcated with stocks in the SP500 and Nasdaq highflyers going to astronomical PE ratios (50-100) while thousands of other stocks going to 0. Before this is all done I expect millions of empty homes, auto sales down 50% from current levels, entire banking system nationalized, 30-40% unemployment rate and $50 loaf of bread.