Supply and demand
Seems the DOW isn’t really worth more. Money is just worth less.
Remember, I do this to entertain me, not you.
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October 15th, 2009 at 10:42 am
Part of the rise is due to the fed(a private organization) not raising the interest rates so as to pretty much force money into the market. Like all ponzi schemes this one will eventually FAIL as people begin to recognize what is going on.
Not to mention that a lot of the movement is being caused by the churning of just a few stocks in the DOW.
October 15th, 2009 at 12:49 pm
*cough*
http://booksbikesboomsticks.blogspot.com/2009/10/your-thursday-morning-doomngloom.html?showComment=1254417310883#c4220646055667515845
October 15th, 2009 at 2:28 pm
emdfl,
The FED is THE problem since it prints money backed by no goods, no services and no precious metals and loans it to our government. And many politicians of both major parties, are virtually owned by this, as you rightly said, “private” and partially international banking cartel.
Whatta scam!!!
October 15th, 2009 at 2:40 pm
Overheard on the deck of the Titanic:
October 15th, 2009 at 3:52 pm
Is it time for a Dow 30k prediction again?
October 15th, 2009 at 5:37 pm
This is a false comparison. The last time the DJIA was at 10,000 (Sept 2008), the following companies were on the DOW:
GM trading then at 10.03 today at 66 cents
Citigroup, trading then at 16.05 today at 5
AIG, trading then at 350, today at 44.61
They were replaced by Travellers, Cisco and Kraft.
Not only that, but the DOW is adjusted by a divisor. The formula is the sum of the 30 stock prices, divided by the divisor. The divisor now is 0.132319125, but then it was 0.122834016.
Using this divisor allows them to play all sorts of adjustment games. If this were scientific, I would say that we are not supposed to adjust the data to get a desired result, but the “science” on global warming tells me we are entering the dark ages again.
October 16th, 2009 at 2:06 am
Pardon me, ladies and gentlemen, while I must be brutish to “emdfl” —
Try to understand, kid. It’s a very simple concept, and you can grasp it if you try.
October 16th, 2009 at 10:34 am
Ron W: “The FED is THE problem since it prints money…”
The Fed does NOT print money, The Treasury Dept does the printing. The Fed sets interest rates to banks and sets the requirement for amount of funds held in reserve. Actually an important distinction.
October 16th, 2009 at 2:17 pm
And your point was, Billy?
I ‘spect I understood inflation long before you did; I started working back in the early ’60’s. Likewise the ponzi scheme called social security.
But MY point was that today’s stock market rise is mostly being moved by the men behind the curtain.
On the inflation side,someone elsewhere pointed out that the last time the market hit 10K it took 30 ounces of gold to buy it; today it takes about 10.
October 16th, 2009 at 2:47 pm
Bruce:
The Fed may not physically print money, but the majority of US currency in circulation is not in bills printed by the treasury. The vast majority of the dollars out there were created by the Fed and the banks(through fractional banking), and exist only as ones and zeros in a computer somewhere.
A mouse click here, and a mouse click there, and soon you are talking about real money.
October 16th, 2009 at 3:20 pm
divemedic,
I’m willing to be educated. What are your sources? How does the Fed create dollars? The Treasury operates at the whim of the President as part of the executive branch. As we go deeper in debt as a nation, the POTUS can direct more money to be printed leading to massive inflation. The Fed cannot.