Comments on: Are We Seriously Approaching Dow 12,000?

By: ThomasL

ThomasL — Wed, 26 Jan 2011 17:17:08 +0000

Had to go find it, but here is a nice chart that shows just how much it does(n’t) mean anything to somewhere around 80% of the population (though psychologically it may matter to many who have no assets there, economically it is what it is…).

http://www.zerohedge.com/article/guest-post-fed-housing-and-stocks-chimera-middle-class-assets

The “have not’s” have far, far less than most realize…

By: Colin

Colin — Wed, 26 Jan 2011 01:05:10 +0000

You know what is more terrifying than scientific illiteracy? Economic illiteracy, which anyone who believes we can plan an economy suffers from. Might as well plan the weather.

By: Dave

Dave — Tue, 25 Jan 2011 11:36:15 +0000

Scientific illiteracy, which riddles American society, is far scarier than any minor or even major waves within our pyramid-scheme economy. Such illiteracy, coupled with much religious irrationality, will be what causes our country’s downfall: by eroding the Constitution with immoral moralities, the denial of equalities, and the laughable illusion of security.

Because while Americans play with themselves, China is investing in research and technology, which — inevitably — will swing the pendulum of power.

The economy will always remain in a state of flux. Those who rig the game know how to profit off uncertainty.

By: Wes Rolley

Wes Rolley — Tue, 25 Jan 2011 04:18:17 +0000

Simply said, it is one more example of how those who have continue to accumulate and those who don’t have it yet will never get it.

The gap between rich and the rest of us increases every year. I am glad that I have retired with the ability to continue living my own life as long as no one does something stupid like privatizing social security.

Add to this the fact that Carol Browner is leaving the White House and the future for action on climate change isn’t very good either.

By: Not Quite

Not Quite — Tue, 25 Jan 2011 03:18:05 +0000

“Stocks are no longer mirrors of national economies; they are not — as is so commonly said — magical forecasting mechanisms. They are small slices of ownership in specific companies, and today, those companies have less connection to any one national economy than ever before.

As a result, stocks are not proxies for the U.S. economy, or that of the European Union or China, and markets are deeply unreliable gauges of anything but the underlying strength of the companies they represent and the schizophrenic mind-set of the traders who buy and sell the shares.”

http://www.time.com/time/magazine/article/0,9171,2005849,00.html

By: JJ

JJ — Tue, 25 Jan 2011 03:01:30 +0000

The stock market is only one of the major economic indicators and actually less important than the other key variables. The housing market is still on the decline and the private sector is not adding enough new jobs to call it a “recovery” – new unemployment claims continue to top 400,000 every week. The official unemployment percentage has only declined slightly as a result of discouraged workers (those who stopped seeking work) and those whose benefits have expired – these are not factored into the official percentage (the “real” unemployment is still somewhere around 20%). That number also doesn’t take into account the number of under-employed, (i.e. college grads) or those working part time that desire full time work. Foreclosures continue to rise and this year is expected to be worse than last year. There’s also lots of bad debt that is due to hit the market due to mortgage lenders having to recognize significant losses on short sales/foreclosures/abandoned properties. In conclusion, the stock market does not reflect an economic recovery – the real estate market and unemployment rates are far more important and essential for recovery.

http://articles.moneycentral.msn.com/learn-how-to-invest/The-real-unemployment-rate.aspx

http://www.businessinsider.com/2011-us-housing-crash-2011-1

http://moneymorning.com/2011/01/13/housing-crisis-could-peak-2011-foreclosures-rise-to-record/

http://www.msnbc.msn.com/id/27309908/ns/business-eye_on_the_economy/

By: Charlie

Charlie — Tue, 25 Jan 2011 01:17:50 +0000

You’ve laid a premise, but I only noted one piece of supporting information. I have to dismiss the quote from Warren Buffett as an ‘appeal to authority’ – as much as I like Warren Buffett.

However, I would be interested in knowing what corporations and/or individuals are profiting from the rise in the market. Are they the same individuals that were present during that period leading up to the last crash? What effect, if any, have the new laws that congress supposedly passed having to prevent such an event from happening again?

Your question is interesting, but I feel the need to ask more qestions before drawing any conclusions.