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Originally posted by RolandBrichter
This market is based on nothing, a dream, an illusion...and the longer the pumpers (parasites) exacerbate the illusion, the more traumatic the inevitable crash back to reality will be....
Originally posted by RetinoidReceptor
Have you guys looked at the premium prices for financial options? All have collapsed today with barely any movement because of implied volatility being totally unsurped from the prices. Traders are beginning to feel more comfortable with financials now....
Originally posted by titian
When has the market NOT been based on a dream or illusion? What's a P/E ratio? A ratio of stock price to earnings. The only reason a P/E ratio is higher than 1 (1 represents that price per share = earnings per share) is because people speculate that the stock is worth more.
Reality is when all P/Es hit 1 or less (true reality). You don't want to see that happen...
Originally posted by GreenBicMan
reply to post by RetinoidReceptor
GOOG and IBM reported tonight already
IBM dominated (as i said of course, they never disappoint) and GOOG was good as well (but not as good as IBM)
GE is the major player now.. if we can get them to pull an IBM I think we see 9000 next week.
Originally posted by audas
Glad people here can see there is a severe disconnection between the markets and the economy - because there absolutely is - what you are witnessing is not - absolutely NOT economic recovery it is inflation. The markets have been flooded with incredible sums of money via the the financials and banks - this is the driving force behind the rally. Beyond that major corporations have de-leveraged and issued bonds, have untold access to untold billions in almost free cash - they should look bloody good.
So the reality is that unemployment continues to rise at almost half a million new applicants per month while those with jobs are going on forced vacation, taking pay cuts and having their hours slashed - none of this is counted though, but its there. So the 70% of the entire US economy - consumption - has fallen straight off a cliff and has simply reached terminal velocity - something which pundits are confusing for bottom out - far, far from it.
Real estate, if its even possible, is still declining with reports of increases in home sales being smudged by banks moving stock. HUGE over supplies of housing have completely flooded the market - this will not recover in any meaningful way for 5 years minimum.
The only hope of global recovery is China - and this is driven my US consumption - not happening and is simply the stimulus pushing through backed by a transition from US treasuries to stock piled commodities - something which is also going to collapse.
So all that has managed to be achieved is a massive inflation of debt, a massive tension placed on future inflation. No bank has been reformed, in fact they are being clearly more reckless as it sucks money from the economy with automated trading, backed with unquestioning government assurance - not even a risk. Car companies are being sold off, have folded, gone bankrupt, or generally completely finished.
Taxes are about to be raised across the board - impacting what remains of the consumer economy. Unfunded liabilities along with the current fiscal brain explosion is going to cripple the government coffers and taxpayers over the next 5 years, totally cripple your society if you decide to takle the problem - in reality you wont and your entire economy is going to be downgraded.
The only thing which can really save the US economy is going to be some serious war - serious war - were talking with China or Iran - beyond that your stuffed -
But of course the markets are going up - there isn't a SINGLE MEANINGFUL statistic which points to any recovery in the economy - so the markets have simply been injected with almost 2 trillion in printed cash - thats it - thats all there is too it - anything else and you are absolutely, totally kidding yourself.
Here is the financial recovery of Goldman summed up perfectly - you can apply this to almost the entire market charade -
US economy is totally tanked - there is a real reason why they are now seriously and openly talking about a global currency because everyone knows that the US currency is totally worthless.......
But yes - the markets are going gang busters -
Originally posted by SpartanKingLeonidas
What I am referencing though is that since the entire system is flawed, set up to be able to be manipulated by the robber-barrons, and work against anyone without either inside knowledge or various financial degrees, you are destined to fail in investing without having a stockbrocker.