are we all stupid?

[Kirk Freeman]

I do like your answer, but I would never advise/suggest that someone collect anything based on expecting a return.

So, I see you are unfamiliar with the Kirk Freeman school of collecting.

Das Kapital? Come on, L11, Marxian linear progression in the era of technology? Commodiities as the trade unit in the era of IP? The Marxian paradox today?

 

[Kutnupe14]

This thread....

****facepalm****

 

[Bradsknives]

So, I see you are unfamiliar with the Kirk Freeman school of collecting.

Das Kapital? Come on, L11, Marxian linear progression in the era of technology? Commodiities as the trade unit in the era of IP? The Marxian paradox today?

There you go, you just had to take this to another level!

I was trying to keep it simple and not get into a discussion about "need" vs. "want" or any Marx's theories about "surplus value", "surplus product", or "labor value" .....etc.

Keep on collecting my friend.

 

[ATOMonkey]

It's easy to explain. The economy is crap because of too much credit, and unpredictable tax law, regulation, etc.

Where do you think all of that credit ended up? In the market of course.

Also, the market hitting 14k doesn't mean dick, because market points are worth nearly as much as they used to be.

We just keep measuring our wealth with a shorter stick and then crowing about how much more we have.

 

[BigSky85]

I think we're on a slippery slope. Amazon reports dismal 4th quarter earnings, and their stock jumps a bunch. Makes perfect sense, right?

 

[ATOMonkey]

The stock market is rigged.... advantage is to the big brokerage companies and bankers. i would guess they are pilfering the retirement accounts. You use to be able to make some bucks if you knew the system, but lately the market is too volatile to risk your money.

I used to day trade in the mid 2000s..... small scale. My aim was to make 40 or 50 a day and up. Sometimes you hit it good. I think my highest was a little over 550 in a few hours. I started out with 9 grand and a few months later had a little over 20 grand. I did the day trading on my lap top while I was at my federal job! Set up in a closet.....

Then I started getting warning letters from the SEC accused of violating trading laws pertaining to day traders. I was told by sec that I would lose my right to trade if I continue to violate the trading laws.

This is the kicker.....

George W. Bush signed into law mandating day traders to have 35 grand set aside to be allowed to day trade. Day trading meaning buying and selling the same stock in one days session!

This was a direct hit for the small trader like me. I did not yet have the 35 grand available to trade.

This meant that I had to swing trade, which means that I could not sell the stock the same day that I buy the stock.

I had to leave my stock in over night...... with this system I started to lose a little more than I made.

So it is rigged to benefit the bigger brokers who feed on the little guy. If you watch the price fluctuation of stocks as they go up and down in price a day trader will profit on both the up-move and profit by shorting on the down move! They do this all day long!

I was decent at day trading but not swing trading.........

I pulled out and haven't touched it since!

This was probably also a nod to those that are allowed to trade after hours.

When a stock can close at $35/share and open at $10/share something is wrong.

 

[lucky4034]

Probably QE Infinity secretly ballooning the money supply

 

[lucky4034]

If you look at nearly any economic calamity in our history, you'll find the stock market performing very well just before it started. Anyone with any fiscal sense understands that there is an economic disaster coming soon. What's happening in the market today doesn't change that.

Its a bubble and it will burst....

 

[roisigns]

Try this...Divide the Dow Jones average by the cost of an ounce of gold to get a better idea of economic trends.

http://www.inflation.us/charts.html

 

[buckstopshere]

This sums up most of 'Merica on the topic

 

[Bradsknives]

Try this...Divide the Dow Jones average by the cost of an ounce of gold to get a better idea of economic trends.

National Inflation Association

I understand a lot of people use this as an indicator, but one of the problems I see in using this Dow/Gold ratio is the Dow average only uses 30 out of the thousands of listed stocks and does not use any method to index the weight of those 30 stocks by their size in the market. That means that highly-priced stocks have more impact than lower-priced stock in much bigger companies.

 

[roisigns]

One could also divide their favorite market index by the price of gas. The point is that cutting a pie into 8 pieces instead of 4 does not cause you to have more pie.

 

[Carmelbythecorn]

so... we all know our current REAL economic woes. massive debt, negative GDP growth, yet the stock market closes above 14000.

this is so so so wrong.
Stocks rally; Dow closes over 14,000

soaring stocks YET we're in a huge financial crisis? it betrays ALL logic whatsoever. can anyone seriously say 'we're in such good shape and everything is well and forever shall be'

either my economics knowledge is SEVERELY lacking, or something is very wrong.

Could it be the MASSIVE inflow of taxpayer money bailing out the banks and some major industries?

Naaaaah

 

[Sfrandolph]

The stock market does not control whether or not we are in an economic crisis. The market is driven purely by the supply and demand laws applicable to the stock values. As major institutional forces particularly, move funds from money markets, T-bills, etc. into stocks when the stock prices are down, the stock prices will accordingly move upward. The reverse is also true. Meanwhile, the prices in the grocery store, gasoline prices, etc. are unaffected. The number of people employed is also unaffected. We are in an economic crisis because there is less than 70% of the working age people that have or are seeking jobs. People are unable without the jobs to pay their bills and mortgages. Thus, the economic crisis.

 

[Ted]

One could also divide their favorite market index by the price of gas. The point is that cutting a pie into 8 pieces instead of 4 does not cause you to have more pie.

Interesting that you mention gas.

The governmental inflation indexes don't incorporate the price of energy and food as a factor.

Two of which, that have both skyrocketed in cost.

 

[Liberty1911]

One could also divide their favorite market index by the price of gas. The point is that cutting a pie into 8 pieces instead of 4 does not cause you to have more pie.

Last time I ordered a pizza, I told them to cut it into 4 slices because I wasn't hungry enough to eat 8.

 

[Ted]

Last time I ordered a pizza, I told them to cut it into 4 slices because I wasn't hungry enough to eat 8.

I remember who said that.

 

[nawainwright]

Is this a trick question?

 

[Nemick]

The Stock Market long ago ceased to be a reliable indicator of the economy's health. it used to be that most of the Dow was made up of Companies that actually made something that could be sold, something tangible. Now it's made up mostly of financial magic companies or companies that simply exist to move money around in circles until it lands in their virtual bank account. It's all smoke and mirrors, people somewhere manipulating market swings with computer buttons..

 

[vzdude]

I'm getting educated.......I think.......