spending cuts in effect, Stocks at all time high - to me this doesn't seem to add up

In the past every time we came close to federal debt ceiling and spending cuts were about to take effect or did take effect for a couple of days, the stock markets fell and at times quite a bit.

stalks plunge as debt talks fail - 2011


Yet now we are almost a week into the debt reduction spending cuts and alas, the stock markets are at an all time high.

Dow keeps climbing

Wallstreet blows off sequester


To me this shows one thing, the fact that the stock markets fell in the past had nothing to do with the debt ceiling, but instead was used to scare people off. Seems the me that the real players in the stock market are making a killing off of the sequester while the rest of us are going to have to pay their bills in the long run.

I could be wrong here, maybe some financial guru can enlighten me on a few things, because the big wigs in the stock market seem to be earning a lot of money here, where in the past the stocks would have taken a sharp turn downwards.

It's all a setup and a coordinated effort to make a lie come to fruition:

www.washingtontimes.com...

All fed agencies in reaction to the "cuts" are compensating to accomplish the prioritized missions. The W.H. is ORDERING then to not do that so as to cause PAIN on the public and make the lies come to be.

I believe it's a trap to lure people to invest, so they can crash it and buy all the shares for pennies on the dollar. It's pointless to invest in the stock market unless you have a lot to play with, other than that you're just food for the machine.

US equitys have been selling and pumping up the stock market for the last 7 weeks. This rise has nothing to do with the nonexistent uptick in sells on main street. Its all paper thats pumping this beast.

US equity mutual fund flow data for the week ended February 27. We can now officially end the 2013 version of the "great rotation" myth because we just got our first outflow, after how many weeks of inflows? That's right: seven. Just like in 2011.

There are no "spending cuts". The government figures an 8% increase in spending yearly. They only got a 4% increase. To them it is cuts. To the common man it is an increase in spending. They will however cut something needed in order to further a political agenda. Most likely culminating in taking the House of Representatives in 2014. It is part of that campaign.

Originally posted by camaro68ss

US equitys have been selling and pumping up the stock market for the last 7 weeks.

US equity mutual fund flow data for the week ended February 27. We can now officially end the 2013 version of the "great rotation" myth because we just got our first outflow, after how many weeks of inflows? That's right: seven. Just like in 2011.

That explains part of it, however I feel that they would not be doing this unless they are looking to make certain 1% that much richer.

reply to post by tw0330


I also saw a headline that said Billionaires were selling off their stock as well recently. That usually precipates a collapse. But it's not happening now? Hmmm.....

I think that it is happening, but we can't have this Administration taking the blame now can we? Naaaawww! The media is protecting them for the most part.

The ugly is coming soon and picking up speed.

Anyone who looks at the stock market and takes it at face value is an idiot.

DOW TO GOLD RATIO

Does nobody here remember the plunge protection team

Does anyone check the dollar index?

Do we not remember that Gold prices are being manipulated??

Where did all the intelligent posters go

Originally posted by TDawgRex
reply to post by tw0330

 

I also saw a headline that said Billionaires were selling off their stock as well recently. That usually precipates a collapse. But it's not happening now? Hmmm.....

I think that it is happening, but we can't have this Administration taking the blame now can we? Naaaawww! The media is protecting them for the most part.

The ugly is coming soon and picking up speed.

edit on 6-3-2013 by TDawgRex because: added line

A bubble always pops at its climax.

This ramp is going to be a sharp upside dowin "V". The question is, how high will it go before then? Based on my calculations, the bottom will fallout this month. And before the end of this month, the FED’s will announce that they will increase there QE from 85 billion to 120 billion. That’s my prediction.

If it comes true, be ready for the “S” to hit the fan by mid July 2013

Originally posted by nomnom
Anyone who looks at the stock market and takes it at face value is an idiot.

DOW TO GOLD RATIO

Does nobody here remember the plunge protection team

Does anyone check the dollar index?

Do we not remember that Gold prices are being manipulated??

Where did all the intelligent posters go

And where in my post did I talk about any of this. Of course the stock market is never that accurate in regards to the economic health of the country. I am just trying to figure out the game they are playing this time.

A small note on the frankly hilarious news that the Dow Jones Industrial Average smashed through to all-time-highs. First of all, while stock prices are soaring household income and household confidence are slumping to all-time lows. Employment remains depressed, energy remains expensive, housing remains depressed, wages and salaries as a percentage of GDP keep falling, and the economy remains in a deleveraging cycle. Essentially, these are not the conditions for strong organic business growth, for a sustainable boom. We’re going through a structural economic adjustment, and suffering the consequences of a huge 40-year debt-fuelled boom. While the fundamentals remain weak, it can only be expected that equity markets should remain weak. But that is patently not what has happened. With every day that the DJIA climbs to new all-time highs, more suckers will be drawn into the market. But it won’t last. Insiders have already gone aggressively bearish. This time isn’t different.

Is this the final blowout top? I’m not sure. But I would be shocked to see this bubble live beyond 2013, or 2014 at the latest. I don’t know which straw will break the illusion. Middle eastern war? Hostility between China and Japan? North Korea? Chinese real estate and subprime meltdown? Student debt? Eurozone? Natural disasters? Who knows..

Zerohedge

Make no mistake, this market is hyper-inflated, will eventually have to correct itself....if it survives a complete correction and is only being propped-up by the Fed.

Personal opinion: Anyone that has money in the market through a 401k and such.....you're crazy. Kiss your money goodbye!

reply to post by sheepslayer247


already pulled it all out 8 months ago. Added to my stack of PM's.

If you dont like the system, fire it. Grow your wealth outside it.

reply to post by camaro68ss


I bailed in 2007, just before the crap hit the fan in 08.

I have money stashed here and there, but I stay far away from gold and silver.

First off the stock market as of right now as nothing to do with the REB or DEM or the economy. The FED Reserve is buying assets to keep the economy afloat.. 85 billion a month, this artificiality keeps the stock prices up.. and Interest rates down...

Both Dems and Rep use this method to artificially make the market look good and keep the stock prices up. so every person with a IRA does nor lose huge amount in there retirement accounts. and the fortunate people with jobs keep them.

here is a good write up about it and it ex-planes it better then I can... here it is...

www.zerohedge.com...

Don't get caught in the strawman argument about this being a DEM VS REP both Bush and Obama use this method and it comes from the Fed Reserve and that.s where the real rulers are,,,

reply to post by camaro68ss


I cashed out last month. Got my check yesterday!

I think that I'll be investing in other things for now.

reply to post by tw0330


Sorry, allow me to make it clear.

Intelligent people have been making money off all this speculation, and fear mongering for a very long time.

They make money on the upswings. They make money on the down swings.

Any one number in and of their selves are 100% irrelevant. It's value exists in relation to every other relevant number.

The more complex your understanding of this all, the better off you are to game any which sway. Everyone else is a putz, and being taken for a ride.

If you don't have an IQ of at least... say 120, stay out of the markets. Don't look at the numbers. They will only deceive you. Don't listen to MSM, they are bought and paid for corporate and government shills.

We're not in a recovery, we haven't been in a recovery since 2009... all a lie.

Leaked email adds fuel to claims White House playing politics over impact of cuts


A leaked email from an Agriculture Department field officer adds fuel to claims President Obama's political strategy is to make the billions in recent federal budget cuts as painful as possible to win the public opinion battle against Republicans.

The email, circulated around Capitol Hill, was sent Monday by Charles Brown, a director at the agency’s Animal and Plant Health Inspection Service office in Raleigh, N.C. He appears to tell his regional team about a response to his recent question on the amount of latitude he has in making cuts.

According to the partially redacted email, the response came from the Agriculture Department’s budget office and in part states: “However you manage that reduction, you need to make sure you are not contradicting what we said the impact would be.”

The response noted that the administration had already told Congress that the APHIS would “eliminate assistance to producers in 24 states in managing wildlife damage to the aquaculture industry” without additional funds.

Arkansas Republican Rep. Tim Griffin said the administration’s response to Brown’s email shows a bid to undermine efforts to replace the cuts, known as sequester, with less onerous ones.

“This email confirms what many Americans have suspected: The Obama administration is doing everything they can to make sure their worst predictions come true and to maximize the pain of the sequester cuts for political gain,” Griffin said in a statement.

Originally posted by sheepslayer247
reply to post by camaro68ss

 

I bailed in 2007, just before the crap hit the fan in 08.

I have money stashed here and there, but I stay far away from gold and silver.

Im only about 20% in the PM's. In the history of mankind, gold and silver has always had value. Im not looking to make money on PM's just hold value.

Two silver dimes can buy me a gal of gas as it did in the 50's

I also purchased other "assets." im in the camp of buying up as much pysical stuff you can get. It could be food, ammo, guns, houses, land. Anything you can get your hands on. We all know everything i just named off was cheaper 6 months ago and its only going to cost more 6 months from now.

reply to post by jimmiec


Bro that's just a distraction to keep you from finding out what's really going on... here is a sample..

$118 Million Dollars An Hour

That is how much money the Federal Reserve Bank of the United States is creating as you wake, work or sleep. That is $85 billion a month and the stuff must go somewhere. It pours out like sugar upon the markets, each market, every market and it is no wonder that the American stock markets are hitting new highs. The spice must flow

Don't buy into the Dems VS Rep its just a distraction both Partys are paid off by Corp america,,

Last year the banks got 85 Billion from us tax payers the oil companys 50 Billion talk about welfare. and your worried about Obama. he and Bush answered to the same people The FEDERAL RESERVE.. That got us by the Ballls.....

So unreal that people can't see there is something wrong with this picture. I think the ultra rich are going to yank their investments shortly and everyones pension funds will collapse. This will make their money much more valuable in the longrun. They will get richer and richer in the end while the majority of Americans will get poorer. It doesn't matter that the value of the stock market isn't real because reality is fed by belief. We have been led to believe a lie.