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  • Stock Markets Advance On QE3 Hopes 1 comment
    Sep 20, 2011 12:02 PM | about stocks: SPY, GLD, AAPL, QQQ, DIA
    The markets are driving higher today on expectations of some major quantitative easing by the Federal Reserve. Tomorrow is the big day. Ben Bernanke and his fellow Federal Reserve cronies will release their policy statement. In his last few speeches, Ben Bernanke has eluded to more easing. Because of this, the markets have high expectations. Today, short covering and buying are taking hold on anticipation of major new measures. The Federal Reserve must now deliver or face a massive drop in the markets.  The SPDR S&P 500 ETF (NYSE:SPY)  is trading at $121.69, +1.38 (+1.15%).

    Should the Federal Reserve dissapoint the markets tomorrow, the down side could be huge. A Dow Jones Industrial drop of 500 points would not be out of this realm. However, Ben Bernanke is well aware of this. It must be assumed he will do his best to deliver.

    Apple Inc. (NASDAQ:AAPL) is surging sharply again. The stock is trading at new all time highs, hitting $422.00. The stock continue to be a major safe haven in an otherwise uncertain future. While the stock is strong, it is far to extended to be a buy. Wait for a pull back.

    Gareth Soloway

    Stocks: SPY, GLD, AAPL, QQQ, DIA
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  • flashrob
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    I was greatly shocked some months ago, when listening to one of Ben Bernanke”s Fed testimonials…in which he stated that INFLATION was “not a problem,” and that “core inflation” – that’s what the Fed uses to measure inflation – was only up .1%. (core inflation, as opposed to “real inflation,” excludes food, energy…all the real stuff that much of the average consumer’s income is spent on…)


    What the hell, I thought… has this guy filled his gas-tank lately? The price of gasoline had risen .97 cents from this time last year. Being a comparison shopper, I had also estimated that the the average prices in Target had increased about 25% in that same one year. (I shop in Target a lot (and buy a wide variety of items, so it’s a good indicator to me of “real inflation”). The .97 cent increase in the price of gasoline, over the course of a year, is actually about 25%, also. So, there’s verification: cost of food, and cost of gasoline. So, REAL INFLATION has increased about 25% in “just one year!” But, I think you know this, and if you don’t, then someone else must be paying “all your bills.”


    Here’s an actual example of an “inflation price increase” at Target.


    Yesterday, while shopping, I went to pick up some paper towels (I use a lot of those…dispensers in bath, garage, basement, kitchen.) I always buy several “two packs” of Viva, and the price is 1.48 for each “two roll pack” of quality paper towels. The reason I buy this way: it’s actually “cheaper than the bulk 8-12 packs” …get it: it’s about $9.00 when you buy it this way…as opposed to a 12-pack, for example, which is way more expensive…like 11-12.99…tricky stuff this shopping…but I pay attention to “unit pricing” - which, by-the-way...”most people DON’T SEEM TO NOTICE this kind of “trickery!”


    Back to my “real inflation example…” so, I go to get my “2 rolls of deluxe Viva for $1.48 a pack,” and guess what… they are “not there anymore.” What is there, is “2 slightly bigger roll pack of Viva with a PRICE OF $4.99!” Now, at first, I thought “it was a mistake”…the price couldn’t have INFLATION INCREASED…”THAT MUCH!” But it had… I used the “price checker scanner,” and $4.99 was the correct price for the new “two pack of Viva paper towels.” Now, I understand that Target/Viva, maybe hadn’t raised “that price” since last year, and so were “just catching up,” But still…that’s a “huge jump in price!”


    So, that’s some about pricing with respect to “REAL INFLATION!”


    Now… on credit cards.


    One of my “major credit cards (and I rarely use major credit cards, except for big ticket purchases online or eating out, etc…), and I ALWAYS PAY OFF THE BALANCE IN FULL EACH MONTH, so that I don’t have to pay any “interest charges.”


    Essentially, I “never cared about “interest rate charges” on credit cards…since I rarely ever pay any - have, like an 850 rating, or should, etc. - I never really looked at the statements in detail…just pay off the full balance online, or by mail. Anyway, I got behind in opening my mail, and opened this cc bill, and noticed it was “just about due.” Well, I didn’t want to screw up my perfect credit record, etc., so I proceed to pay off the whole balance…but as I was doing this – and I was glad I noticed this – IF I HAD BEEN “ONE DAY LATE” in making my payment… “MY INTEREST RATE WOULD HAVE GONE FROM ABOUT 14% TO 29%...just for being “one day late!”


    So, it occurred to me: HOW MANY PEOPLE ARE PROBABLY “ONE DAY LATE” …for whatever reason…mail delay, misplaced mail at home…there are lots of reasons you could be late with a payment…even if “you have, or make a lot of money.” AND ONCE YOU HAVE “SLIPPED UP,” for whatever reason…THEY HAVE YOU AT THAT NEW “SUPER HIGH RATE.” Now, in my case that wouldn’t have “made much difference.” My recent charges about 2500. since the last billing…I just paid off in full…so a huge increase in the “interest rate” just makes my credit rating shaky…but is of no real consequence to me…other than that, because I always pay off the balance in full.


    I could easily get along with just debit cards…but then you have to “keep checking the cash balance in your accounts, etc.” so you don’t overdraw your account, etc…and I don’t want to pay for overdraft, so I keep a few major cc cards… is the easier way to go for me.


    So, in conclusion: I’m estimating that A MAJORITY OF CONSUMERS are paying “on average” OVER 20% and maybe even 29%...”UNBELIEVEABLE!” …because as the months go by…you’re “bound to slip up and be late” …and it “only takes one time…” and they got you!


    So, “THAT’S YOUR REAL INFLATION METER” along with the one, I previously mentioned: your local service-station pump price for a gallon of gas!”


    Two of the greatest “non-bull-spin” meter-type indicators of REAL INFLATION…the inflation that AFFECTS YOU!


    Not some “phony government statistic” you heard in the media, like Ben’s “core-inflation” hype nonsense.


    Note: a couple other points…


    The Federal Reserve and Credit Card agencies…publish statistics on “interest rate statistics.” I’m not trusting those… kind of like the misleading “unemployment statistics” they give you: they “don’t include people” WHO ARE NO LONGER ELIGIBLE TO COLLECT BENEFITS…BUT ARE “STILL UNEMPLOYED!” “getting the picture here” …it’s called: “making sh_tty numbers” LOOK GOOD, OR NOT AS BAD AS THEY REALLY ARE!!!


    So, when the “CREDIT CARD INTEREST RATES” start to “go the other way” …then I’ll maybe start to believe INFLATION is diminishing…until then … I KNOW THAT PRO-FINANCIAL PEOPLE aren’t stupid…THEY ARE PRICING IN “REAL INFLATION” INTO THOSE CREDIT-CARD REVENUES TO “OFFSET REAL INFLATION!” …and so that is the pro-financial people INDICATING TO YOU THAT WE HAVE “REAL INFLATION” and those rates are expected to KEEP ON INCREASING…which means the Pro-financial people: DON’T REALLY BELIEVE WE ARE GOING TO HAVE A “FINANCIAL RECOVERY!... bad days now and “to continue” is their message, etc.


    Also, watch, the “price of gasoline, too” …though the gov can “influence that more.” But “credit cards” is “private financials” so THAT’S EVEN A BETTER MEASURE OF “REAL INFLATION.”




    20 Sep 2011, 02:18 PM Reply Like
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