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"Stellar Economic Data"

LeRoy_Was_Here

LeRoy_Was_Here

Senator
The Dow Jones was up more than 200 points earlier today, and is still up by around ~150 points, on what news reports are calling 'stellar economic data':

What financial crisis?

U.S. stocks surged Tuesday as investors digested stellar economic data that appeared to put the housing and financial crises far in the rearview mirror.

The Dow Jones Industrial Average rose by more than 200 points, or 1.4%, to hit a new trading high of 15,542. (Tracking the Dow 30)

The S&P 500 rose 1.4%. The Nasdaq gained 1.6%.

At the same time, the yield on the 10-year Treasury note surged above 2.1% -- its highest level in more than a year.

Housing is hot. Consumers are confident: Quarterly housing numbers showed the biggest price increase since 2007.

S&P/Case-Shiller reported that housing prices rose a better-than-expected 10.2% during the first quarter. That helped boost the entire sector. The SPDR S&P Homebuilders (XHB) ETF jumped more than 2%.

Separately, the May reading on consumer confidence hit a five-year high and jumped more than expected.

The Tuesday rally? Tuesday seems to be the day for buying in 2013. Today marks the 20th consecutive Tuesday that the Dow has inked gains.

Investors were already feeling pretty optimistic as they returned from a three-day holiday weekend in the United States.

LeRoy: But hey, you can bet that our local nattering nabobs of negativity will not take this kind of news lying down!
 
I guess that means the FRB is going stop bailing out Wall Street with $85B (unofficially $200B)monthly QE bailout/stimulus anyday now?
 
LeRoy: But hey, you can bet that our local nattering nabobs of negativity will not take this kind of news lying down!
Click to expand...

I was counting to ten and WMB chimed in at precisely seven! :D

Good news indeed LR.. for patriots that is.
 
worldlymrb said:
I guess that means the FRB is going stop bailing out Wall Street with $85B (unofficially $200B)monthly QE bailout/stimulus anyday now?
Click to expand...

Yes. There has been a lot of talk in the news about the ongoing discussions among Fed governors about when to start phasing out quantitative easing. They will almost certainly phase it out gradually, but the first step in that phased pullback will likely take place within the next few months.

And you would know that, if you paid any attention to the news.
 
Well, good luck with that.. some predict gold will plummet to $750 by end of next year.
 
Bo-4 said:
Good news indeed LR.. for patriots that is.
Click to expand...

Now for the bad news which you ignore. This so-called recovery is being artificially propped up with Central Bank monthly $85B (unofficially $200B) QE/liquidity, which it can NEVER exit from. In fact, any future "economic growth" will require even GREATER amounts of QE/Stimulus.

Now back to your regularly scheduled delusion...

[video=youtube;gqsT4xnKZPg]http://www.youtube.com/watch?v=gqsT4xnKZPg[/video]
 
worldlymrb said:
I guess that means the FRB is going stop bailing out Wall Street with $85B (unofficially $200B)monthly QE bailout/stimulus anyday now?
Click to expand...

The FRB's mandate is to simultaneously keep inflation and unemployment low. Right now, inflation is quite low and has been near record lows for years, while unemployment remains high and has been for years. So, the FRB's mandate says they should be EASING money supply, not tightening it. Instead, they're likely to keep it steady for the foreseeable future.
 
LeRoy_Was_Here said:
Yes. There has been a lot of talk in the news about the ongoing discussions among Fed governors about when to start phasing out quantitative easing. They will almost certainly phase it out gradually, but the first step in that phased pullback will likely take place within the next few months.

And you would know that, if you paid any attention to the news.
Click to expand...

Any pull back by the FRB will collapse the Stock Market, end send us into another depression.
 
Arkady said:
The FRB's mandate is to simultaneously keep inflation and unemployment low. Right now, inflation is quite low and has been near record lows for years, while unemployment remains high and has been for years. So, the FRB's mandate says they should be EASING money supply, not tightening it. Instead, they're likely to keep it steady for the foreseeable future.
Click to expand...

At least your smart enough to see any tightening by the FRB will be disastrous to the economy and to the almighty Wall Street.

If the FRB keeps the liquidity pump steady, then there will be no growth. No growth also means no jobs.

What I see is the FRB QE/Liquidity Pump&Dump EXPANDING, while at the same time talking about a QE exit.
 
LeRoy_Was_Here said:
When I mentioned 'nattering nabobs of negativity', you know it was Worldly who I had in mind.....
Click to expand...

He's always right on time with a screed about the central banks, and today was no exception.

He's got this little timer that goes off each time someone posts good economic news of ANY sort!
 
worldlymrb said:
Any pull back by the FRB will collapse the Stock Market, end send us into another depression.
Click to expand...

Absurd. Any pull back will be very gradual, and might lead to a stock market correction---a fall of a bit more than 10%---but there is no reason to expect a stock market CRASH or COLLAPSE. Corporate profits and earnings are both very high. THAT is why the stock market is high.

What would send us into another Depression is the kind of economic and monetary policies of austerity that you want.

You seem to be one of those peculiar people who is actually PRAYING for a Second Great Depression.
 
LeRoy_Was_Here said:
Absurd. Any pull back will be very gradual, and might lead to a stock market correction---a fall of a bit more than 10%---but there is no reason to expect a stock market CRASH or COLLAPSE. Corporate profits and earnings are both very high. THAT is why the stock market is high.

What would send us into another Depression is the kind of economic and monetary policies of austerity that you want.

You seem to be one of those peculiar people who is actually PRAYING for a Second Great Depression.
Click to expand...

Question; would buying a few Krugerrands be a bad investment? Especially if the price keeps going down, and I can buy them cheaper? I mean no matter how bad the economy gets, doesn't gold always have some value, as a hedge at least?
 
Excellent news. My hope is the Real Estate market where I live slows down a little but I think investors in Real Estate and the Market are giddy. They were sitting on a lot of money throughout the recession waiting for the right signs.
 
freyasman said:
Question; would buying a few Krugerrands be a bad investment? Especially if the price keeps going down, and I can buy them cheaper? I mean no matter how bad the economy gets, doesn't gold always have some value, as a hedge at least?
Click to expand...

Gold is a hedge against inflation, but inflation does not appear to be much of a threat right now. I suspect the price of gold has still further to fall, as the American economy slowly heals. So I, myself, probably would not be buying any Krugerrands right now. If the price of gold falls below $1000 per ounce, I might consider buying a few, but mostly just to diversify my portfolio, not out of any fears that hyperinflation is about to break out. I probably SHOULD have at least some precious metals in my portfolio; but I would probably go for silver rather than gold. Silver is the poor man's gold, they say. And frankly, silver is a much more USEFUL metal than gold, with all kinds of industrial applications. Which is not to say that gold has no industrial applications, because that would be quite an overstatement.

Your question seems to imply that the economy is getting worse. I don't think it is; I think it is slowly getting better.
 
Minotaur said:
Excellent news. My hope is the Real Estate market where I live slows down a little but I think investors in Real Estate and the Market are giddy. They were sitting on a lot of money throughout the recession waiting for the right signs.
Click to expand...

I like to see real estate gains in the range of 4-7% per year. Any more than that has bubble potential.

Btw, i'm hoping that the Fortune 1000 who are sitting on piles of dough right now react positively and start hiring!
 
LeRoy_Was_Here said:
Absurd. Any pull back will be very gradual, and might lead to a stock market correction---a fall of a bit more than 10%---but there is no reason to expect a stock market CRASH or COLLAPSE. Corporate profits and earnings are both very high. THAT is why the stock market is high.

What would send us into another Depression is the kind of economic and monetary policies of austerity that you want.

You seem to be one of those peculiar people who is actually PRAYING for a Second Great Depression.
Click to expand...

Sure a few global corporations with the right political connections are doing great, as are the mega rich. HOWEVER, only 1 out of three corps 1Q13 profits, beat 1Q12, that is a downward trend.

And it is YOU who is predicting the FRB is going to implement AUSTERITY by exiting the QE/Stimulus.

And for you absurd comment that I "wish" for a depression. NO! I really do WISH we could print our way to prosperity forever, I really, really do. I just KNOW/accept that you cant because there is no such thing as a free lunch.
 
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