Friday, August 26, 2011

Fed Keeps Hope Alive


You really do have to smile at how this headline is worded...as it confirms that more money printing might be our only hope left.

US STOCKS-Wall St bounces as Bernanke keeps hopes alive

NEW YORK, Aug 26 (Reuters) - U.S. stocks rallied on Friday
after a speech by Federal Reserve Chairman Ben Bernanke raised
hope the Fed could consider further stimulus measures for the
economy at an extended policy meeting in September.
 Initially stocks fell after Bernanke stopped short of
detailing plans to strengthen the ailing economy. But the
market turned higher as investors surmised the Fed was leaving
the door open for action.
 "He didn't give the market the green light for QE3. He also
didn't give the market the red light for QE3," said Kevin
Caron, market strategist at Stifel, Nicolaus in Florham Park,
New Jersey, referring to a possible third round of quantitative
easing.
 "By implying that inflation is viewed as not a concern, it
leaves the possibility for something down the road," he said.
 The Dow Jones industrial average .DJI was up 141.38
points, or 1.27 percent, at 11,291.20. 

See it here;  http://www.reuters.com/article/2011/08/26/markets-stocks-idUSN1E77P1AB20110826

Seriously?!?  That's what we are left with?!?  The market will ONLY go up if the Federal Reserve prints more money?  Remember friends, if General Mills is selling for $10/share and then the Fed comes out and says they are going to print 10% more dollars than are already outstanding and scatter them on the economy....then it is only elementary that General Mills stock would also increase by 10%...and of course when it that stock goes up and every other stock goes up by 10%, then the Dow Jones Average also goes up by 10%.  When that happens the talking heads on the Today Show can them come on in the morning and say, "Wow Maria...the stock market is really going up!!  Can we expect more good news from the market over the next week too?"

Can you understand the smoke and mirrors that this whole system has become?  The Fed says they will print money and the market goes up...and then people FEEL better....and if they FEEL better, maybe they will go take out a loan, buy a car they can't afford and thereby stimulate the economy....for a while. 

Further, when will China, Germany, Brazil, Japan and Russia all call Bernanake and tell him, "Listen you S.O.B...if you guys don't quit printing money and devaluing our investments in U.S. Treasury's...we are going to dump all our holdings and swamp you into the toilet."

What a day that will be!

2 Comments:

Blogger Tom said...

The Iranian President says that an Egyptian-Iranian alliance in the post-Mubarak era could eliminate "the Zionist entity"

Read more here....

http://abna.ir/data.asp?lang=3&id=262065

The reference to Syria in this article is of interest.

Peace,

Tom

August 26, 2011 at 6:56 PM  
Blogger Tom said...

Hey again,

A quote from a UN statement dated 19 August 2011

All settlements, including those in East Jerusalem, and their associated regime, such as the appropriations of Palestinian land and water, closures, checkpoints, demolitions, evictions and the separation wall, are illegal under international humanitarian law and amount to grave violations of the human rights of the Palestinians.

http://www.un.org/News/Press/docs/2011/gapal1209.doc.htm

So, when and if the Palestinians get their state. All of the physical property and assets listed above become property of the Palestinian People. Under Islamic rules of conquest he who takes keeps the spoils. It might get a tad ugly.

Peace,

Tom

August 26, 2011 at 7:20 PM  

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