Shabba

Amazon-Sized Craziness

I think the stock is more a reflection of cheap money than the actual fundamentals of the company. I'm short the stock, so I am kind of biased. But this just gets absolutely more and more ridiculous as time goes on.

I like the company, it's a great story and they'll do well but the stock is just totally ridiculous. You have to keep things in perspective by remembering that they earned .45 a share last quarter and that was .15 more than the same quarter last year. And on than news the stock has gone up $45.00 a share on the earnings announcement and the ridiculous pump and dump upgrades that followed.

Equities Update: Stocks Strike Fresh Highs

It's bad because everything you own is denominated in dollars and those dollars are becoming more and more worthless. The fact that foreigners own more and more US stocks can be that positive either.

In essence the federal government if forcing you to accept and asset devaluation and artificially low rates on your savings to bail out the idiots who created this mess. Most people would be &#$! furious if they understood this.

Equities Update: Stocks Strike Fresh Highs

People are converting their yen/euro/pound etc into dollars. When you do this you can borrow dollars at a very low interest rate AND you pick up an extra bonus in the appreciation of your currency vs. the dollar. The money is going into stocks apparently.

The decrease in the dollar is good for exports from the US, but it is bad for imports to the US (it increases the price). You could also argue that the importers won't be able to raise their price because demand is so weak, and that might be true.

At any rate it is a very bad sign that stock are rising along with a falling dollar. It probably indicates mass buying of equities by foreigners. In other words, Bernanke is effectively selling off the country by keeping rates low.