Who do you support for Governor in Ohio in 2010?

Free Market Capitalist wrote:

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Not sure if you understand this or not. I am assuming you do, but I suspect there are many reading this blog that don't.
The stock market really has nothing to do with the economy. It is really just a gauge of how much liquidity is in the system at any given time. The only reason the stock market is back near its all-time highs (S&P 500)is because of the QE programs. If not for that, then it would be much, much lower. That is why the economy can be weak and the stock market high, like it is now. Bernanke and company target the stock market to change perception, because they know that people will assume that everything is much better when it really isn't. Also, they are trying to create a "wealth effect." Unfortunately, the average person outside of their 401k doesn't own stocks. Not only do we need to get rid of Obaba, but Bernanke needs to go, too.

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Free Market Capitalist wrote:

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Where are you going to come up with the other trillion? By taxing the piss out of everyone? If they do this, the economy will be garaunteed to slow down, when the government is taking more money out of the private sector. Of course, Obama thinks he can redistribute it and everything will be fine. The only way the government can raise revenues is by keeping taxes low and allowing the private sector to create more jobs, then the government will naturally take in more because there will be more jobs. More jobs is the solution, not raising taxes. Besides, the government has a spending problem and they need to adress that before anything.

Che Reagan Christ wrote:

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Trickle down doesn't work. Never has. Never will.

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Che Reagan Christ wrote:

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Trickle down doesn't work. Never has. Never will.

Free Market Capitalist wrote:

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Not sure if you understand this or not. I am assuming you do, but I suspect there are many reading this blog that don't.
The stock market really has nothing to do with the economy. It is really just a gauge of how much liquidity is in the system at any given time. The only reason the stock market is back near its all-time highs (S&P 500)is because of the QE programs. If not for that, then it would be much, much lower. That is why the economy can be weak and the stock market high, like it is now. Bernanke and company target the stock market to change perception, because they know that people will assume that everything is much better when it really isn't. Also, they are trying to create a "wealth effect." Unfortunately, the average person outside of their 401k doesn't own stocks. Not only do we need to get rid of Obaba, but Bernanke needs to go, too.

Che Reagan Christ wrote:

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Don't you think the conditions now are different compared to the conditions when he took office?

StarryStarry wrote:

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I absolutely agree with you. Conditions are very different since B.O, took office. It's amazing, really, how many homes, jobs, small businesses no longer exist. But, that's just plain 'silly' to you, eh?

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Reality Speaks wrote:

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when you crap your pants....does it trickle up?
100% of your posts are lies.

xxxrayted wrote:

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Understood. But it doesn't gradually increase because of that reason. True, fake money always bumps the market up, and DumBama has done that a few times.
I still say that it's multinational companies that have been carrying the market on their backs. Just an example, a year or so ago I took note of all the KFC chicken places closing up. All the outlets around me did, so I became suspicious. I looked around on the net and found an explanation.
It seems that KFC is uprooting most of their stores and building them in China. Americans have become so cheap, they won't even spend a good buck on good food, so KFC was not making enough money and closed down the lowest performing restaurants.
They are still an American company though with a few places left. But their real money is in China where the people cannot get enough KFC, and they are not even selling Chicken there.

StarryStarry wrote:

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I absolutely agree with you. Conditions are very different since B.O, took office. It's amazing, really, how many homes, jobs, small businesses no longer exist. But, that's just plain 'silly' to you, eh?

Che Reagan Christ wrote:

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You have a strange obsession with feces. What did your mother do to you?

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Che Reagan Christ wrote:

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You have a strange obsession with feces. What did your mother do to you?

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Reality Speaks wrote:

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when conversing with a turd, you have to keep it at a level the turd will grasp.

Che Reagan Christ wrote:

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KFC = "A good buck for good food." That explains it all.

xxxrayted wrote:

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Understood. But it doesn't gradually increase because of that reason. True, fake money always bumps the market up, and DumBama has done that a few times.
I still say that it's multinational companies that have been carrying the market on their backs. Just an example, a year or so ago I took note of all the KFC chicken places closing up. All the outlets around me did, so I became suspicious. I looked around on the net and found an explanation.
It seems that KFC is uprooting most of their stores and building them in China. Americans have become so cheap, they won't even spend a good buck on good food, so KFC was not making enough money and closed down the lowest performing restaurants.
They are still an American company though with a few places left. But their real money is in China where the people cannot get enough KFC, and they are not even selling Chicken there.

Free Market Capitalist wrote:

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Go back to 1971 when Nixon ended the Bretton Woods system where foreign countries could no longer convert (redeem) their U.S. dollars for gold. Nixon essentially broke all ties between the dollar and gold and gave the government, with the federal reserve as an accomplice, the ability to expand the money supply infinitely. This also allowed the the government to start running huge deficits because the money was no longer backed by anything.
Now, go look at a chart of the S&P 500 starting around 1971. It was trading below 200. From there it pushed ever higher into March of 2000 at a peak of 1527, where the bubble then popped and crashed. Since then, we had a higher high in 2007, and , currently, we are working on another one.
You might say that the economy expanded tremendously during that time (1971-2000). Well, I can't deny that, but one must ask why it expanded, not including population growth. The main reason the economy expanded was the massive expansion of the money supply. If I could post a chart here to illustrate it, I would. Money supply is controlled initially by the Fed and then secondarily through the fractional reserve banking system. All money starts out as a loan. The boom of the 90's was fueled by debt. Everything comes from debt. In fact, our money is actually backed by debt. The Fed controlls all this. Think of the Nasdaq bubble that popped in 2000 and the recent housing bubble. These bubbles were spawned from the Fed and they were really part of a bigger bubble known as a debt bubble or debt super cycle. They popped because they were created from debt, they were simply inflated with cheap money, they had no real value.
The collapse of 08' was nothing but the system trying to deleverage, same with the Nasdaq bubble in 2000. Another name for it is deflation. Both bubbles popped because the Fed started raising interest rates. Remember that the Fed is basically incompetent and they always do too much or too little. They are playing God and don't really know what the hell they are doing.
So, basically, I will stick with my belief that the stock market is nothing but a gauge of how much liquidity is in the system at any given time. Now, essentially, you could say the same about the economy in general. When liquidity is added, the economy expands; when liquidity is taken out, the economy shrinks. However, the stock market is a better gauge or proxy because you can visualize it as a simple index - S&P 500 - with price levels.
Basically, you got several idiots led by Bernanke who are trying to micro manage the entire economy by manipulating interest rates and money supply.
I wish I could explain this better, but I don't have time and it really is a difficult thing to try to explain because it is very complex and I have never really been that good at explaining comlex things.