enigmaman

Wall Street Breakfast: Must-Know News

And to make everybody feel better about the future and the benefits of the 787 billion stimulus bill the AP reports this bit of news


WASHINGTON — A top White House economist says spending from the $787 billion economic stimulus has already had its biggest impact on economic growth and will likely not contribute to significant expansion next year.

Christina Romer, the chair of President Barack Obama's Council of Economic Advisers, said Thursday that the $194 billion already spent gave a jolt to the economy that contributed to growth in the second and third quarters of the year. She told a congressional panel that by the middle of next year, the impact of the stimulus will level off. Romer said spending so far has saved or created 600,000 to 1.5 million jobs but warned that unemployment will remain high, above 9.5 percent, through the end of 2010.

Dow Target 6,617, October 25, 2009: Here Is Why

the market and economy are joined at the hip, if Summers would be bad for the economy it will be bad for the market. Bernanke is not an Obama man, he is a left over from the G Bush, Im sure Obama would like to replace the odd man out with his own man Summers, that would complete a Full House for Obama,


On Aug 05 05:05 PM wtp wrote:

> " . . . I hear L. Summers really really wants the job and Obama really
> really likes Summers, what affect do you think that would have on
> the market."
> Don't know about the market, but the effect it would have on the
> economy would probably be about the same as the effect on me -- deeper
> depression.

Dow Target 6,617, October 25, 2009: Here Is Why

Like I said investors believe what they want to, you point to macroeconomics not being the same then as now, agreed, so they changed one part of the game plan but most of the rest of the parts are the same , with the same team of unreliable players (investors), arguably the most important part of the equation without which their is no market. Will that monetary philosophy change be enough, only time will tell! The ball is in the Bernanke court, so it will be up to him, if he acts. Hey, let me ask you, what if Obama doesnt reappoint him, I hear L Summers really really wants the job and Obama really really likes Summers, what affect do you think that would have on the market.


On Aug 05 11:51 AM Vox Rationalis wrote:

> Any discussion of today and the 1930s can reach no meaningful conclusions
> without a comparison of macroeconomics - specifically the monetary
> environments.
>
> The simple fact is that monetary policy during the early 1930s was
> an abject failure, forcing the economy into the depths of a deflationary
> depression. This is a lesson that Bernanke has well learned, as
> has every other economist worth his salt.

Dow Target 6,617, October 25, 2009: Here Is Why

But you have to admit that there are many market comparisons that do make one wonder, similar economic catalysts started the economic route, similar initial losses, similar rally gains, similar time frames, similar ten years market performance from 1930-1940 & 1999- present, both at losses, same type of government interventions, same type of government social spending, same consumer protect me attitudes and there are many more but only if your out of the market or at least one foot out one foot in, if your all in and riding this wave your probably not listening, you probably dont want to know and thats human nature and that is what makes the market what it is, VEGAS BABY


On Aug 05 09:46 AM TLassen wrote:

> I'd say historical comparisons of charts without understanding the
> actions taken by Governments in '30 and today are completely different
> could lead to wrong conclusions.
> The market is influenced by macro and micro economics (supply and
> demand, buyers and sellers)
> I'd say mass psycology is influenced by the market directions, not
> the other way around.
>
> On Aug 05 08:24 AM David Braunstein wrote:

Dow Target 6,617, October 25, 2009: Here Is Why

How you look at things depends on what side of the fence your on. If your in the market you want to believe your right if your out of the market you want to believe your right. In either case you are right until your wrong. The market is not science, not set in stone the market is all emotions, buyers and sellers, opposite sides of the spectrum, one side fighting the other to be right.

The economy and the market are intertwined, connected at the hip and if they were both viewed in the same way one views a stock in fundamental and or technical terms nobody would own them long term, that being said nothing I have just said matters because neither are equities so fundamentals and technicals do not apply, tarot cards, we-gee boards, tea leaves and oracles are what one needs.


On Aug 05 08:09 AM RSAAKS wrote:

> The author states.."Let's be honest, our economy is getting worse
> and as far as waiting for the economy to come back, my question is
> "what economy?"
> How do you explain existing home sales on the rise, ISM index approaching
> 50, etc. While I see no gangbusters economy yet, but it does not
> look like the whole market move is a hoax, there are some hints of
> recovery. Check out how the cash for clunkers is working for auto
> sales-what about pick up in sales of base metals...

Closing Update for Friday, July 24: Salvaging a Gain

The recent stock market rally started when investors realized " We would not fall into the abyss", then the market started to run up based on very bad financial reports that could have been worse, it continued its run based on companies ability to post profits and survive through drastic cost cutting measures, and now they may have run into a wall, we could be at the markets tipping point, with the market considered fully valued, the market mayl retest recent lows if investors continue to believe this will be a jobless recovery, which means companies will only be profitable if they continue to rob Peter to pay Paul, that being the case investors will want to lock in recent ousttanding gains and stampede for the exit door.