So where's your recovery now?

Originally posted by eldard
reply to post by dreamseeker

 

Actually, Jim Cramer has been harping about the end of the "recession" since March. And coincidentally (or not) the Dow has been on the upswing since then.

You mean the same idiot that said Bear Stearns was fine right before the bottom fell out of it? If that guy told me "the sky is blue today" I'd walk outside to make sure it hadn't changed to purple.

Jim Cramer FAIL

My take on the Recovery

I didn't want to have to type the whole thing again.

reply to post by HunkaHunka

Originally posted by HunkaHunka
Where do you think the money which is invested in a stock goes? Does it just stay there until someone buys or sells it?

Yes

Originally posted by HunkaHunka
No it's used by that company for further research and development... after all it IS an investment.

The better the market is doing, the more companies can hire and invest in themselves, which means the better for the work force and general economy.

See this is one of the things they fail to teach in high school.

Thank God!

Originally posted by HunkaHunka
Second... when someone purchases stock in a company, they have more capital to expand the business (i.e. hire people)

When you purchase 100 shares of say...Widgets Inc , the proceeds from the sale remain in the brokerage account of the market participant that sold them to you. The $ belongs to him/her/it...and it stays in their account until it's either reinvested , or withdrawn as cash to spend elsewhere.

The only time companies receive proceeds from the sale of their stock is in the initial public offering (IPO) , or , by the sale of additional new shares.....see Equity Financing/Secondary Offering.

reply to post by HunkaHunka


So we're saved then. Coca-cola will have more money to spend on research and development. It can only benefit Atlanta. I see it now.

reply to post by Wildbob77


If there's gonna be a recovery, it will be very minimal/slow. People's perspectives have been changed forever. It will never return to the excesses of before the crisis. Thinking otherwise would be delusional.

So technically that's not a full recovery, is it?