DOW Down 316

[unregistered]

 

[Amberchgo]

Clearly the world is ending.

 

[Lancecastor]

Vette's "portfolio" just took a big hit.

http://sidoxia.files.wordpress.com/2009/08/groin-kick.jpg?w=455

 

[mngramps]

Wondering/thinking if tomorrow will be much of the same as today? I'm looking to buy IBM, BBY, UPS, UNP & AAPL to close out my grandsons ESA. If not tomorrow, the market is bound to loose more. It's part of the game! Up, then down, then up again, then down again. We'll see...

 

[unregistered]

 

[unregistered]

 

[Amberchgo]

The week anyway, could be more tomorrow.

Could be. its what the market does.

Haven't had a 10% correction for a while. Would be good to have one.

 

[Lancecastor]

Maybe the Argentina meltdown is showing folks the fallacy of creating too much worthless money.

Do you yearn for a simpler time?

That way, you could understand the things they talk about on TV better.

 

[unregistered]

 

[Adre]

Maybe the Argentina meltdown is showing folks the fallacy of creating too much worthless money.

One down day and we're Argentina? You should continue keeping your assets in the pink piggy bank on your dresser.

 

[unregistered]

 

[unregistered]

 

[dan_c00000]

Vette's "portfolio" just took a big hit.

http://sidoxia.files.wordpress.com/2009/08/groin-kick.jpg?w=455

That's fucking hilarious.

https://cdn1.iconfinder.com/data/icons/is_google_plus_one_icons/256/google_plus_one_%2B1_flag.png

 

[4est_4est_Gump]

One down day and we're Argentina? You should continue keeping your assets in the pink piggy bank on your dresser.

It's been a three-day decline.

It's not Argentina. It's the Fed. It's all artificial and not economy based.

There were also bad earnings reports, which is funny considering 4% gdp growth...

 

[Adre]

It's been a three-day decline.

It's not Argentina. It's the Fed. It's all artificial and not economy based.

There were also bad earnings reports, which is funny considering 4% gdp growth...

Gold down, bond yields rising, market believes the economy is stronger than you do and the Fed has knocked 50 billion a month off of QE on the way to zero by October.

 

[4est_4est_Gump]

Gold down, bond yields rising, market believes the economy is stronger than you do and the Fed has knocked 50 billion a month off of QE on the way to zero by October.

Wrong.

It sees the end to pumping and rising interest rates which means bond buying to lock in profits and try to keep pace with inflation, which is next. Without the pumping, the stocks lose their value because they were not based upon an economic turn-around.

 

[Adre]

Wrong.

It sees the end to pumping and rising interest rates which means bond buying to lock in profits and try to keep pace with inflation, which is next. Without the pumping, the stocks lose their value because they were not based upon an economic turn-around.

Sorry, bonds sold off yesterday in a strong move of confidence.

 

[Que]

Gold down, bond yields rising, market believes the economy is stronger than you do and the Fed has knocked 50 billion a month off of QE on the way to zero by October.

Not today it doesn't.

I was over at a friend's place last night and he had Russian TV on. This British financial analyst was doing a good job explaining how, for example, bank valuations are off because they have been using zero interest loans to buy back shares of their own stock to raise the value of their share by concentration. In the process it improved their stated P/E ratios to much lower levels. Numbers off the top of my head were something like stated P/E of 22 and actual P/E if they issued stock to pay back the free money of over 30.

As he rightly points out no one would by a bank stock with a PE ratio of 30. I don't remember exactly but historically they run around 7, I think.

So why do people buy them (and other stocks) because they are buying them with "free" money he says. They make huge returns with no margin costs and if they happen to lose, they simply cover those losses with more free money.

His analogy was apt. If Vegas casinos offered chips at no charge, how much more gambling would people do?

It is a bit hyperbolic because of course the money is not "free." It is "interest free." the principal in theory has to eventually be paid back.

A more accurate analogy was how much trouble would compulsive gamblers be if they could gamble with chips loaned to them interest free?

The other two reasons that the market has done so well is the excess "printed" money has devalued the currency and equities are a hedge against that and the artificially low interest rates (zero) has made investing anywhere else treading water.

 

[Que]

Sorry, bonds sold off yesterday in a strong move of confidence.

Where did you borrow that phrase from? Be interesting to see it in context. Spin, much?

You do know that equities and debt instruments usually fluctuate in inverse proportions to each other?

 

[eyer]

Just be careful with the pins and needles, folks...

...bubble be bery, bery vulnerable right about now.

 

[Que]

It's been a three-day decline.

It's not Argentina. It's the Fed. It's all artificial and not economy based.

There were also bad earnings reports, which is funny considering 4% gdp growth...

Keep in mind the "growth' in GDP is a rolling accounting trick. Over "estimate" it this quarter, revise it (always downward) to no headlines later, and use the revised lowered GDP number from last month to make up this months over-estimate.

We are crawling out of basement, but only just.

No worries, the "best and brightest," completely uneducated, teenage gang members from Central America will soon be given Pell Grants to add to the glut of college graduates and in just a few more years, things are gonna be coming up roses I tell you.

 

[Que]

Just be careful with the pins and needles, folks...

...bubble be bery, bery vulnerable right about now.

Well, if the bubble breaks it is because of the greedy fat cats on Wall Street, nothing at all to do with monetary supply like every other bubble in the past was.

Probably something to do with Bain Capital and offshore accounts.

 

[Que]

That's fucking hilarious.

https://cdn1.iconfinder.com/data/icons/is_google_plus_one_icons/256/google_plus_one_%2B1_flag.png

I know RIGHT????

'Cause the nerd is getting kicked in the testicles!

I sure hope that wasn't just caught with a still-frame camera, That TOTALLY needs to be on "America's Funniest Home Videos!" LOVE that show. Without it, how would America know what was funny?

 

[Adre]

Where did you borrow that phrase from? Be interesting to see it in context. Spin, much?

You do know that equities and debt instruments usually fluctuate in inverse proportions to each other?

Key world being usually. In case you had not noticed this did not hold true for the last six months.

I also know that price and yield move in opposite directions, which seems to elude AJ. Did you ever get straight on that offshore investment and tax liability issue you were all backwards on yesterday? You know, the one where you reckoned that American folks with money socked away in Cayman or Singapore didn't have to worry about paying capital gains taxes?

 

[Joeybagadonuts]

it's Obama's fault.