Archive for the Stock Market Category

The Dow At 14 K. Again. (February 4, 2013)

Posted in Banks and Banking System, Economics, Federal Reserve, Housing, Inflation, Stock Market on February 4, 2013 by

. . .

C          “Back above 14,000 again.”

D          “Happy daze are here again.  I guess.  14,000 is better than 7,000, but how much better and for how long and for whom and for what reasons are anyone’s guess.”

C          “Beaucoup dollar electrons are given to those who already have beaucoup dollar electrons.  There are no other places to plug in the dollar electrons, so the stock markets are the default investment.”

D          “And money market funds and certificates of deposit are paying .0000001 percent which is crippling current retirees.”

C          “And those who know that the stock market is rigged and instead seek a safe refuge have no remunerative alternative.”

. . .

C          “Real estate continues to fool everyone.  The value of commercial properties is likely to slide as brick and mortar businesses board up their doors and windows.”

D          “The banks cannot mark to the actual market value their vast portfolios of repossessed and returned houses and underperforming loans.  Their collective insolvency would be manifest.  A collective lie undergirds the system.”

C          “Housing starts may be up but only at the upper end of the housing market.”

D          “With these low interest rates, a 30 year note is very appealing and may be prudent and prescient for the right person.  The homeowners who can manage to hold jobs and fund and feed a mortgage with a low interest rate may find that they have a bird’s nest on the ground.”

C          “When inflation takes off.”

D          “Yup.”

. . .

C          “One arm of the government – the Federal Reserve – is funding and fueling the other arms of the government with bogus electronic chits.”

D          “The way I see it, one arm of the bankers – the Federal Reserve – is funding and fueling the bankers and fooling and defrauding the body politic.”

C          “Anything that cannot go on forever.”

. . .

[See the “e-ssays” titled The Dow Jones (the Murdoch ?) Hits 14 K In A Hollow Economy (July 23, 2007) and “Fiat Stock”: Taking Stock Of The Stock Market (May 16, 2011).]

Bumper stickers of the week:

Shouldn’t it be Obsessive-Compulsive Order?

Anything that cannot go on forever will not go on forever.

“Fiat Stock”: Taking Stock Of The Stock Market (May 16, 2011)

Posted in "Fiat ______", Middle East, Stock Market on May 16, 2011 by

. . .

?          “Let me get this right.  Once the stock is initially offered, typically to a few connected individuals and institutions on the Inside, the company does not receive any of the money from any subsequent stock sales?”

!           “Right.  The shares are bets by individuals and institutions.  The holder of the stock may receive some dividends that are taxed as ordinary income.  However, the holder of the stock is gambling on the market decreeing that the stock is worth more because the company is somehow worth more.  Some individuals and institutions on the Inside get information called ‘inside information’ that allows them to buy the stock before those on the Outside learn that something happened earlier that makes the stock more valuable now.  The holder of the stock is counting on a pension fund or endowment or widow or other Outsider being there to buy the stock at a higher price.”

?          “To get the dividends?”

!           “At least a dividend is something.  The big score is to sell the stock at a higher price to someone who did not have the ‘inside information’.”

?          “But what is the stock really worth?”

!           “Who knows.  The government and the Fed could double the supply of money/money electrons and give the stuff to those on the Inside to spend.  Then the aggregate stock prices would roughly double.  That is particularly true today when there really are no other viable competing investments.”

?          “But what is the stock really worth?”

!           “Does it really matter.  You’re on the Outside.  Don’t ask too many questions.  Play along.  Just because it is your future does not mean that it is not a game.  The key is knowing when to hold ‘em and when to fold ‘em.”

?          “While you only have ‘outside information’ to guide your gamble?  And then if you actually win anything, you convert the stock into ‘fiat money’?”

!           “Or convert it into ‘fiat gold’ or ‘fiat silver.’  It’s that simple.”

?          “But what is it really worth?”

. . .

Bumper stickers of the week:

Trust Me

Have Faith

George Mitchell Resigns ; Middle East Hopeless