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SadistDave -> RE: Dow Jones hits new high, closes above 15,000 for first time (6/1/2013 3:03:26 AM)
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ORIGINAL: SadistDave
quote:
ORIGINAL: Owner59
Gobama![:D]
[sm=dancer.gif]
What was the Dow Jones average when the President took office? [:D]
While our adult geopee-children cry and whine and govern through fake scandal......the President will be outshining their pathetically weak asses and walking tall, over the next year and a half....
http://www.washingtontimes.com/news/2013/may/7/dow-jones-hits-new-high-closes-above-15000-first-t/?page=all
"The Dow briefly cracked the 15,000 barrier last Friday, peaking at 15,009.59 before falling back below the mark later that day. On Tuesday, it closed at a new all-time high of 15,056.20, up 87 points, or nearly 1 percent — the latest in a string of record closes for Wall Street, which has put the recession in the rearview mirror.
Markets around the world were also up, reflecting rising investor sentiment that the U.S. economic recovery is firmly on track and the Federal Reserve remains committed to low interest rates. Investors also seem to believe that Europe is getting a handle on its financial crisis.
“The stock market has been on a strong run for several months now,” said Mark Hamrick, Bankrate.com’s Washington bureau chief. “I think the markets have put much of the Great Recession behind them as the economy has been expanding at a decent rate.”
The broader Standard & Poor’s 500 index has also enjoyed a nice run in 2013. The S&P closed Tuesday at 1,625.96, up 8 points, or less than 1 percent. It also broke the 1,600 barrier on Friday, and has held on to its gains.
The Nasdaq closed up more than 3 points or less than 1 percent at 3,396.63, well below a record high.
Analysts say investors are gaining confidence in the markets, which is fueling the recent gains.
“That’s really a vote of confidence in the economic recovery,” said Paul Edelstein, director of financial economics at IHS Global Insight. He pointed out that as the stock market has ticked up, bonds, which are viewed as a safer investment, have declined. That means investors are feeling safer about stocks, and see less of a need to hedge against possible downturns"
The day you posted this, the AP had another story out about the rising stocks being a result of investors hoping to cash in on continued federal stimulus dollars. 1st quarter growth was downgraded and unemployment went up by 10k jobs. Couple that analysis with the fact that the number of people living in poverty continues to rise and it's pretty clear that this rise in stocks is purely manufactured.
If... IF that story is correct, there are not any signs that this is some kind of sustainable increase. If the stocks are actually rising because investors expect government funds to bolster the stock market, then either the Fed will have to continue to throw money into the markets or the market will start to go down again. Since this administration believes that problems can be solved by throwing money at them, it's a crap shoot and investors are milking the Fed until Bernanke kills their cash cow.
Now. Why would I bring that up? Because it appears that it actually IS what has been going on. Consider yesterdays article in Business Standard which states quite clearly that the Fed has been busy injecting cash into the markets.
quote:
Fed Chairman Ben Bernanke said last week that an improvement in data could trigger the central bank to start tapering its asset purchases in coming months, stoking fears that the $85-billion-a-month liquidity injection will soon come to an end.
The Fed has been injecting EIGHTY FIVE BILLION DOLLARS PER MONTH into the market to effect this artificial increase. So, in reality the stock market has been going up as a direct result of government meddling for some time. The gains you are so proud of are 100% fake. What you are seeing is professional traders feeding off of tax money being injected into the market. The only way that stocks continue to rise is if Bernanke continues to artificially bolster the market. If he does decide to taper the Feds contribution, the market will go down accordingly. If Bernanke cuts of all funding the market would crash.
Aside from the fact that these stock gains you credit to Obummer are completely artificial, the truth here is that all the credit/blame for these meaningless gains in the stock market are credited to Bernanke. It appears that Obummers failing economic policies are so bad that it is necessary for the Fed to step in and cover his ass to the tune of 85 billion dollars a month.
-SD-
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