patrick.net

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"
I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

I'm prepared to get rich. The 188% gain in just two years is helping me immensely.

You should remember where money to buy stocks comes from; it's excess capital saved by someone anywhere on earth.

Assuming the world GDP is slowly growing, e.g. USA 2% since Obama, this is still growth which translates to growth of savings capital for investment.

Dividends paid by companies that make stuff like gasoline, soap, toothpaste, food, cableTV, phone service, etc. are 3% or so, while interest rates are much lower. So, what will investors worldwide do with their excess capital?

There can be a zombie apocalypse and people will still use their cell phones and drive cars until the zombie rips the things out of their hands.

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

Weeeeeeell! she's going to get her wish.....hopefully she has hunkered down

http://video.cnbc.com/gallery/?video=3000265971

....the middle class already has less money thanks to QE and beyond

Bubbabear says

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

Weeeeeeell! she's going to get her wish.....hopefully she has hunkered down

http://video.cnbc.com/gallery/?video=3000265971

....the middle class already has less money thanks to QE and beyond

Ha ha ha. I could not help laughing at your wheeeeeee.

Bubbabear says

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

Weeeeeeell! she's going to get her wish.....hopefully she has hunkered down

http://video.cnbc.com/gallery/?video=3000265971

....the middle class already has less money thanks to QE and beyond

I had lunch with her a month ago. She makes a lot of money.....no family.....always close to broke. In her 50's, and an inability to save will lead to a not so nice retirement. I warned her years ago.
What can I say?

@strategist

I have a friend who is kind of like your co-worker. She makes good money and spends good money. She and I talk about girl stuff just because we grew up together. She talks about the new clothes she buys, her new car, her expensive haircuts. I talk about whether or not to cut my hair, but my haircuts cost a third of hers and hers happen twice as often as mine.

She won't let me help her financially. What I mean is that she only talked to me about refinancing her mortgage AFTER she did it. She totally got conned. Sure she cut 5 years off the pay off, but now she has PMI FOREVER. If she could have had the discipline to send in amount of money that is her PMI without refinancing, she probably could have cut 10 years off the mortgage. I think she thinks of her house as her "retirement" fund.

She does have a nice house. I guess if the value of my retirement goes through the floor, maybe I can live with her when we get old. If she ends up bankrupt and my savings still have value, maybe she will live with us.

Strategist says

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

A full market collapse back in 2007 would have been not only the best thing for America but the world. We would have recovered by now.

It would probably be disastrous now, because now most Americans have forgot how to make opportunities, where in the past, a full market collapse would have been the opportunists dream.

In the past hundreds if not thousands of smaller and medium sized businesses benefited by larger institutions collapsing, as they made profit be feeding off the carcass.

Strategist says

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

So what? The robot to take her job is on its way.

What motivation do the poor and unemployed have to wish for the stock market to rally and not burn?

sbh says

New Renter says

What motivation do the poor and unemployed have to wish for the stock market to rally and not burn?

The difference between fast food obesity and the rancid taste of bankster face.

Banker face tastes better, is healthier and MUCH better for the environment.

That Bill Miller Guy at 5:53 is also a big Bubbabear says

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

Weeeeeeell! she's going to get her wish.....hopefully she has hunkered down

http://video.cnbc.com/gallery/?video=3000265971

....the middle class already has less money thanks to QE and beyond

Bill Miller at 5:53 is a strong proponent of bitcoin--

New Renter says

Strategist says

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

So what? The robot to take her job is on its way.

What motivation do the poor and unemployed have to wish for the stock market to rally and not burn?

If the stock market really burns down, there won't be anything to trickle down for the poor. There would be anarchy.
But you are right, the poor will not see any benefit in a healthy stock market.

CaptainShuddup says

Strategist says

You know, a few years ago, a co-worker told me she wished the stock market would collapse. When I asked her why, she said "because I don't have any"

I explained to her that a collapse in stocks leads to recessions, unemployment, and less money for everyone, especially the middle class. That she could be one of those who lose their jobs.

A full market collapse back in 2007 would have been not only the best thing for America but the world. We would have recovered by now.

It would probably be disastrous now, because now most Americans have forgot how to make opportunities, where in the past, a full market collapse would have been the opportunists dream.

In the past hundreds if not thousands of smaller and medium sized businesses benefited by larger institutions collapsing, as they made profit be feeding off the carcass.

They do say that an occasional recession is healthy for the economy as it wrings out the inefficient businesses.
But a depression, which almost took place in 2008 would have killed event the best businesses like a cancer. Thank God it did not happen.

Strategist says

If the stock market really burns down, there won't be anything to trickle down for the poor. There would be anarchy.

So what's your definition of "really burns down"? 5% drop? 30% drop? 60% drop? And for how long?

Strategist says

They do say that an occasional recession is healthy for the economy as it wrings out the inefficient businesses.

But a depression, which almost took place in 2008 would have killed event the best businesses like a cancer. Thank God it did not happen.

Japan has no businesses left. 20 years of cannibal anarchy is responsible for the massive drop in the Japanese population.

Everyone knows that!

sbh says

Strategist says

If the stock market really burns down, there won't be anything to trickle down for the poor. There would be anarchy.

Anarchy is supposed to be a good thing, especially for the poor. It's the fastest way to recoup relative standard of living. Since they've never had anything, once everyone else goes tango ultra in the glorious charlie foxtrot they gain an instant competitive advantage.

During the French Revolution that might have been right as most of the GDP was agricultural based, where the peasants could keep farming. Today's peasants are welfare dependent who refuse to even pick strawberries. We Americans have become weak.

New Renter says

Strategist says

If the stock market really burns down, there won't be anything to trickle down for the poor. There would be anarchy.

So what's your definition of "really burns down"? 5% drop? 30% drop? 60% drop? And for how long?

Strategist says

They do say that an occasional recession is healthy for the economy as it wrings out the inefficient businesses.

But a depression, which almost took place in 2008 would have killed event the best businesses like a cancer. Thank God it did not happen.

Japan has no businesses left. 20 years of cannibal anarchy is responsible for the massive drop in the Japanese population.

Everyone knows that!

80% to 90% drop for 10 years. IMHO.

Bubbabear says

Bulls Be Prepared To Eat CROW!

You were saying.........
http://www.cnbc.com/id/101628340

Strategist says

Bubbabear says

Bulls Be Prepared To Eat CROW!

You were saying.........

http://www.cnbc.com/id/101628340

Nobody will be eating crow until this stops:

That shows investors are absolutely looking past the first quarter, and looking to the Fed to continue with lower rates

The Fed has given investors what they were expecting, and investors like that stability

The much weaker-than-expected GDP "gives the Fed a whole lot more leeway to keep doing what they're doing. They've said they intend to keep rates near zero until 2015, and if you look at today's GDP report, you start to believe it

Even with taper, the system is still wildly gamed.

JH says

Strategist says

Bubbabear says

Bulls Be Prepared To Eat CROW!

You were saying.........

The feds want a healthy stock market, and a healthy real estate market. Without that you cannot have a healthy economy with high employment.
http://www.cnbc.com/id/101628340

Nobody will be eating crow until this stops:

That shows investors are absolutely looking past the first quarter, and looking to the Fed to continue with lower rates

The Fed has given investors what they were expecting, and investors like that stability

The much weaker-than-expected GDP "gives the Fed a whole lot more leeway to keep doing what they're doing. They've said they intend to keep rates near zero until 2015, and if you look at today's GDP report, you start to believe it

Even with taper, the system is still wildly gamed.

JH says

Strategist says

Bubbabear says

Bulls Be Prepared To Eat CROW!

You were saying.........

http://www.cnbc.com/id/101628340

Nobody will be eating crow until this stops:

That shows investors are absolutely looking past the first quarter, and looking to the Fed to continue with lower rates

The Fed has given investors what they were expecting, and investors like that stability

The much weaker-than-expected GDP "gives the Fed a whole lot more leeway to keep doing what they're doing. They've said they intend to keep rates near zero until 2015, and if you look at today's GDP report, you start to believe it

Even with taper, the system is still wildly gamed.

The feds want a healthy stock market, and a healthy real estate market. Without that you cannot have a healthy economy with high employment.

Yeah, they basically want this:

Strategist says

a healthy stock market, and a healthy real estate market....

...[despite] high employment

They have record stocks and near back-to-record home prices, but I'm not sure about the 'healthy' part. (and not sure if that is exactly what they want.) Anyone can look healthy with makeup!

JH says

Yeah, they basically want this:

Strategist says

a healthy stock market, and a healthy real estate market....

...[despite] high employment

They have record stocks and near back-to-record home prices, but I'm not sure about the 'healthy' part. (and not sure if that is exactly what they want.) Anyone can look healthy with makeup!

I think that's right, the pig has a lot of lipstick to make it look pretty, but lets see how it looks with no make up first thing in the morning.

Strategist says

I think that's right, the pig has a lot of lipstick to make it look pretty, but lets see how it looks with no make up first thing in the morning.

And when the beer goggles come off.

I'm just worried the fed is digging into a hole that they won't know how to get out of. Kind of the "what next" scenario scares me if (when) stocks/homes lose value again.

Call it Crazy says

That hole has already been started and getting deeper.... Just look at the wonderful 0.1% GDP report today...

Meh, cold winter.

Haha, or the peak.

Call it Crazy says

0.1%

Ya, I could see it as a fake number. The lowest number possible that prevents this from being the first quarter of the next recession.

If the West puts sanctions on Russian businesses and Russia retaliates by cutting off the flow of gas to Europe, the resulting dual recessions would affect our stock market negatively.

Strategist is 1/2 right, the politicians want a stock market "wealth effect", you'll recall Obama crowing that the stock market rose as a sign that the economy was doing well under his direction.

The concept of high stock prices and high house prices helping the economy is backwards however.

Jobs/wealth/growing GDP comes from 1. production 2. innovation

So, jobs are growing in Texas and North Dakota from production of oil and gas. Jobs are also growing in Silicon Valley from innovation.

There are rich guys in poor countries with lousy economies who still buy US stocks. If interest rates stay low (they will probably), stocks are an attractive investment.

Apple dividends pay 2.3%, not a bad deal for some compared to bonds.