Author: abcfirst

The Dow Jones Dropped by 666 - Omen of Things to Come? [Copy link] 中文

Rank: 6Rank: 6

Post time 2018-2-10 20:32:46 |Display all floors
Pluge protection Team and high frquency traders are all coked up to take care of things-for now.

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Post time 2018-2-10 20:33:21 |Display all floors
Mishao Post time: 2018-2-10 20:32
Pluge protection Team and high frquency traders are all coked up to take care of things-for now.


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Rank: 8Rank: 8

Post time 2018-2-11 10:45:19 |Display all floors
The P/E of the SP500 had been over 20 for several years because interest rates on bonds were so low and the rich (and even middle) classes bought stocks (and derivatives). But with a coming  rise in bond rates, some people are (correctly) thinking that such multiples are too high. There is no great economic crisis. The low growth of the economy is all one can expect with too much of the money supply tied-up in the hands of a relatively few rich people (everywhere in the world).
What's on your mind...

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Post time 2018-2-11 17:59:22 |Display all floors
The table below lists the Dow Industrial Index for February 2018:

























The media blames the rising interest rate for the rout in the stock market.  But, the rising interest rate is needed to rein in the inflow of money into the wallets of the average American worker due to tax cuts and rising employment.  The question is, what is wrong with an overdue revaluation of the price of domestic goods and services upward?  When stocks were rising while production was flat, Nobody complained abut the upward valuation of domestic stocks, did they?  Why is inflation of real goods and real services bad, while inflation of financial assets, good?  If they keep the interest rate at the present value, the working people are going to have more to spend, and more each of their dollars could buy.  Is that bad?

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Post time 2018-2-12 10:54:17 |Display all floors
If the financial news media are serious about their work, they should really be all over the place reporting on how the big shots view the situation and what they plan to do come Monday.  But, all the public get is the sound of silence every Sunday, when the major decisions are being made.  And, after the moves have been made, the finance reporters then go into retroactive frenzy, trying to figure out what happened, if not why it happened.  The gale of pessimism is followed by a mobile "good weather system" that encourages every indecisive soul to take the plunge on assets of every type.  News become advertisement.  And when ads are not being veiwed, news ceases.

So, will Monday bring sunshine or will it bring rain?  

The news media does not know, and does not care to find out.  It's job is to report on the past, not to help the public anticipate and change their future.  This is media transparency at its best - clear rear-view windows - while the windshield is covered with a sun shade, or in a real storm, with mud.

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Post time 2018-2-12 13:35:51 |Display all floors
The working, saving public never wizens up to how the economy is to pay them back for the work they did, saved in the form of stocks that they own.  They won't.  And all it takes is for the stock market to drop, and they can only take out a fraction of what they put in.

Simple and neat.

Beats Bitcoin is looting the savings of the upper middle class whose pension funds are locked in the stock market.  When they sell their stocks and buy bonds instead, the interest rate is then and only then, raised, which makes their bonds fall below par value, and more of their savings vanishes into empty space.  No money is stolen, credits in the form of money are simply erased, giving way and creating space for more to be printed.

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Post time 2018-2-12 13:38:10 |Display all floors
War, natural disasters, erase wealth.  Stocks and bonds are alternatives.  Get smart.

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