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Post by avordvet on Jun 20, 2012 4:51:00 GMT -5
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Post by Michael Downing on Jun 20, 2012 6:52:12 GMT -5
The stock market rose yesterday on the premise that they were sure the Fed was going to step in this week and "stimulate" the economy. Fools one and all...
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Post by Cujo on Jun 20, 2012 7:10:40 GMT -5
The stock market rose yesterday on the premise that they were sure the Fed was going to step in this week and "stimulate" the economy. Fools one and all... Good times are heading our way my friend!
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Post by aronatbc on Jun 20, 2012 7:51:11 GMT -5
"HHHmmm.... that didn't work the last couple times we tried it. Let's do it again..."
Stop the planet. I want off.
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Post by safetalker on Jun 20, 2012 8:33:30 GMT -5
Think about this! If 1 share of stock is also a part of the total of the stock exchange rates. Say it costs $100.00 per share. Then I buy it, but to get it I must pay $103.00 because the Dollar is devalued and i am buying it from a foreign investor. Tomorrow that stock is worth $103.00 and the company is just as good as before, but the stock market goes up $3.00. When you see the Dow go up it could just mean that the value of the money buying the stock went down! We accept this BS without looking at the cost. When the Fed says "restricting the economy" it means that they reduce the number of bills in circulation. Reduce what? The earning power of your pay check. The number of FRN available for you to buy food. The number of FRN available in your bank to pay your bills. The number of FRN required to pay your pay check. Remember that as of march the Fed was told by the IMF not to print any more dollars or the IMF will stop accepting FRN for payment on our debt. So when the fed "restricts" it means we have to pay more to buy what we need.
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Post by stoner44magnum on Jun 20, 2012 13:24:13 GMT -5
I've tried explaining this to many of my less astute friends and family. They believe the stock market is a great indicator of how the economy is doing. The stock market's up so the economy must be doing better and that barrack obama must be doing a great job. Never minding the fact that they are now paying MORE for their groceries, MORE for their gasoline, MORE for their electric bill (and that particular part of the economy is going to get FAR worse), MORE for automobiles, MORE for EVERYTHING. They just can't make the connection.
It is very simple for me to understand when my wife tells me our grocery bill that was $150/week is now closer to $300/week. I thank goodness we both have very good jobs and can absorb the hit for now. And that we've been preparing for so long that we are pretty well set up so not being able to do massive scale prepping doesn't hurt so bad, but there will come a day when that changes for even us and we'll have to make more serious decisions about where our money goes. I fear that day will be coming sooner rather than later.
I don't know how folks that don't make as much are truly surviving. I couldn't imagine even losing one of our incomes in this economy.
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Post by Cujo on Jun 20, 2012 16:38:27 GMT -5
Stock market is up, so the economy is good? There are so called intelligent people out there that believe this.
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