Interesting economic article from Forbes Magazine, re Obama

[Steelharp]

http://www.forbes.com/sites/adamhartung/2013/05/16/economically-could-obama-be-americas-best-president/

[thundersnow]

If you want your blood pressure to go up a few points think about how this article will read when the fed stops their quantitative easing policies...

http://en.wikipedia.org/wiki/Quantitative_easing

The distinguishing characteristic between QE and monetizing debt is that with QE, the central bank is creating money to stimulate the economy, not to finance government spending.


If you want a good laugh:
http://m.youtube.com/#/watch?v=PTUY16CkS-k&desktop_uri=/watch?v=PTUY16CkS-k Edited May 22, 2013 by thundersnow

[Guest TankerHC]

The problem is these people have not read George Paish, probably the greatest economist who ever lived. The exact same thing that is going on now happened just prior to the 1929 crash and Paish accurately predicted it.

 

Stocks are way overvalued. And stocks are being overvalued intentionally to build revenue for companies for R&D and just to make money. Money that is not there. Some prominent economists have written articles recently that said all it would take is a "call" across the board and everyone would see its nothing but paper, there is no real cash to back up those stock valuations. Wall street is nothing but a bunch of worthless paper.

 

Paish predicted the 1920 (And 1929) crash and also said that we would see Europe heading for bankruptcy. This was the prediction for 1929. By the time of the 29 crash, Europe was already bankrupt and literally starving. Paish predicted what would happen when company after company went public, people would be buying stocks (People who really had no business investing in the stock market) and would take out loans to buy stocks. They did. He predicted that the market for perishables would collapse, there would be too much food in the US, there was. The harvests were too large, the bottom fell out of the wheat and citrus markets. He predicted with all of this big money, investors would start taking out loans. They did, and with the loans started buying on margins.

 

The stock market reached all time highs in percentages. Not real value. Then South America had a drought. Failed crops caused commodities to rise and the stock market started dropping. Instead of divesting, people started buying more and they were buying on margins.

 

Along with the speculators, everyone buying on margins then taking out loans to buy more on margins, and failed crops in South America and overseas, Europe Bankrupt, when the US Stock Market collapsed it took the rest of the world with it.

 

The collapse only lasted a few weeks. People think it was THE reason for the Great Depression, it wasnt, it was the beginning. People like Morgan and the Rockerfellers bought up huge blocks of shares in every company they could as soon as the crash happened to try to stabilize the stock market. It worked but only for a little while. Weeks. But later when recovery started only people like the Rockefellers were super rich, everyone else was broke. They had bought the huge blocks of stock for next to nothing.

 

I only heard about George Paish a couple of months ago, first I read his World Economic Suicide then "The Credit of Nations and The Trade Balance of the United States and right now I am on "The Economics of Reparations".

 

For people who dont believe someone can predict the future, George Paish predicted the future, many times. He predicted the 1920 and 29 crash almost to the day and said exactly how it would happen. The same thing is happening today. The Stock Market is all smoke and mirrors. When they pull back the curtain, everything is going to collapse, if George Paish is to be believed. And considering he is considered about the greatest economist who ever lived, Ill take his word for it.

 

BTW, Paish's books are out of print, so you can get them all in eBook form for free for anyone who wants to see the future. He wrote a lot of books.

[Guest Lester Weevils]

My crystal ball sucks, but we have stock collapses "every few years" and it is almost time for a new one.

 

All the unemployed people with no stocks and barely a pot to pee in, most likely are not encouraged because the market is "up".

 

Possibly the market is not "overvalued" however. Inflation adjusted, the market is at best "almost as good" as in 2007 and 1999. So at best it is treading water, and most likely losing real value for at least 15 years. It is nice for people with a portfolio if the stock market has gone high enough to tread water in inflation-adjusted value. That would be preferable to having the money in a mattress or buried in the back yard in a fruit jar, where it would be losing value drastically month to month, year to year.

 

Anyway, IMO it would be time to sell, not buy. You don't buy high and sell low. That ain't the way to do it.

Edited May 22, 2013 by Lester Weevils