FED raised the cost of money, markets come down...

[Days]

Now, this time, because one or two posters said my prediction was wrong, I'm going to tell you I told you so...

Dow has worst four-day start to a year on record

 

[Woolleybugger]

Tied to the Chinese it seems....from everything I have read, this had very little to do with the small rate increase.

 

[Days]

Tied to the Chinese it seems....from everything I have read, this had very little to do with the small rate increase.

They intend to keep increasing the rate by 25 bips, same marching tune Bernanke marched to pop the housing bubble. I predicted; crest to trough, this "crash"will lose 10,000 pts, for the DOW Jones. So, I've got a long way to go on this one.

As far as the Asian markets, they are part of the global marketplace, it is one big happy family nowadays. Both are happening in sync. I expect the global market to crash with our market... same as 2008. This time around the trigger is very gentle, so the slope might be less severe, hence, we could be at this for three years, even five years.

 

[Woolleybugger]

They intend to keep increasing the rate by 25 bips, same marching tune Bernanke marched to pop the housing bubble. I predicted; crest to trough, this "crash"will lose 10,000 pts, for the DOW Jones. So, I've got a long way to go on this one.

As far as the Asian markets, they are part of the global marketplace, it is one big happy family nowadays. Both are happening in sync. I expect the global market to crash with our market... same as 2008. This time around the trigger is very gentle, so the slope might be less severe, hence, we could be at this for three years, even five years.

Well, it is hard to judge what is going to happen for a couple reasons. One, the supply of money sitting around the globe is so humongous that it is hard to grasp. It has to invest in something and you are right in that it seems to flow to one bubble after another bubble. I think stocks will be somewhat safe long term though because there simply are not enough stocks to fill the need of all this dough. Two, the world is now so interconnected that no economist or investor can really insulate themselves from what is going on so what can anyone do but go along for the ride and pull out when they get the heebie jeebies. I really think that we are in a unique economic ecosystem now, no one ever imagined this type of situation before and lets face it, if the world is going to get richer and richer then that will demand more money be created. If I knew the real answer, I would bet on it. I don't. It is easy to be a bull or a bear, it is much harder to be right.

 

[Days]

Well, it is hard to judge what is going to happen for a couple reasons. One, the supply of money sitting around the globe is so humongous that it is hard to grasp. It has to invest in something and you are right in that it seems to flow to one bubble after another bubble. I think stocks will be somewhat safe long term though because there simply are not enough stocks to fill the need of all this dough. Two, the world is now so interconnected that no economist or investor can really insulate themselves from what is going on so what can anyone do but go along for the ride and pull out when they get the heebie jeebies. I really think that we are in a unique economic ecosystem now, no one ever imagined this type of situation before and lets face it, if the world is going to get richer and richer then that will demand more money be created. If I knew the real answer, I would bet on it. I don't. It is easy to be a bull or a bear, it is much harder to be right.

Woolley, that's the most astute economic observation I've ever read.