Comments on: Post Mortem for the Stock Market http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/ a radical newsletter in the struggle for peace and social justice Thu, 08 Dec 2011 15:07:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: William Schmidt http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-13973 William Schmidt Mon, 04 Feb 2008 00:20:32 +0000 http://www.dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-13973 Can The Fed Rally Save The Market? Bernacke's dramatic cut in the Discount Rate cuts is very bullish. But for how long? The closest parallel was, I argue, the Fed rate cuts of 1957-1958. That led to a DJI rise of 51% over 21 months. I do not believe the Fed's actions deal the root causes of the coming deep recession. Wealth has now reached the same pernicious concentration levels of the 1920s. This spells dangerous under-consumption and exceessive investments in bubbles. http://www.tigersoft.com/Tiger-Blogs/February-03-2008/index.html The wastefulness of the Military Industrial Complex is, of course, not touched... And the 2-trillion dollar war makes the US hated more than ever, bleeds the US dry and weakens the Dollar. But the rates cuts will boost the market in this a Presidential Election year. And that is all the FED really expects to accomplish. I have written about what Bernacke has learned from Greenspan's mistakes and what he has learned from studying the Fed mistakes in the Great Depression. This can be viewed at http://www.tigersoft.com/Tiger-Blogs/February-03-2008/index.html Next year. the Fed will have no political incentive to lower rates. And the Democrat who becomes President will have his/her hands full. They will need to tax the rish and the stock market will drop like a rock. Can The Fed Rally Save The Market?
Bernacke’s dramatic cut in the Discount Rate cuts is very bullish. But for how long? The closest parallel was, I argue, the Fed rate cuts of 1957-1958. That led to a DJI rise of 51% over 21 months. I do not believe the Fed’s actions deal the root causes of the coming deep recession. Wealth has now reached the same pernicious concentration levels of the 1920s. This spells dangerous under-consumption and exceessive investments in bubbles.
http://www.tigersoft.com/Tiger-Blogs/February-03-2008/index.html

The wastefulness of the Military Industrial Complex is, of course, not touched… And the 2-trillion dollar war makes the US hated more than ever, bleeds the US dry and weakens the Dollar.

But the rates cuts will boost the market in this a Presidential Election year. And that is all the FED really expects to accomplish. I have written about what Bernacke has learned from Greenspan’s mistakes and what he has learned from studying the Fed mistakes in the Great Depression.
This can be viewed at http://www.tigersoft.com/Tiger-Blogs/February-03-2008/index.html

Next year. the Fed will have no political incentive to lower rates. And the Democrat who becomes President will have his/her hands full. They will need to tax the rish and the stock market will drop like a rock.

]]> By: rene arns http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-13329 rene arns Sun, 20 Jan 2008 00:22:35 +0000 http://www.dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-13329 The second part of the Kondratieff winter has begun. Do not invest in assets except precious metals and hold cash. The second part of the Kondratieff winter has begun. Do not invest in assets except precious metals and hold cash.

]]> By: William Schmidt, Ph.D. http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-4964 William Schmidt, Ph.D. Fri, 31 Aug 2007 04:00:20 +0000 http://www.dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-4964 I agree with you. The potential is there for a huge decline in the US stock market. I post on my own blog additional reasons for being disconcerted. The Dems will probably win in 2009 and will probably finally start to tax the rich, quite properly. The stock market will do its typical "CRY BABY" thing and go into a big dive. And the Dems have lambasted Bush for deficit spending, properly so. This means there will be no room for Keynesian public works deficits. And the Fed will do what it can to sabotage the Democrats, as Volcker did to Carter and Greenspan tried todo to Clinton in 1994. http://www.tigersoft.com/Tiger-Blogs/index.htm My criticism of what you write is only that you fail to mention the trillion dollars wasted in Iraq and the world of enemies Bush has created. The Democrat who will try to right what Bush has wronged will lament his/her choice to become President in such an inauspicious era. I agree with you. The potential is there for a huge
decline in the US stock market. I post on my own blog
additional reasons for being disconcerted. The Dems
will probably win in 2009 and will probably finally
start to tax the rich, quite properly. The stock market will do its typical “CRY BABY” thing and go into a big dive. And the Dems have lambasted Bush for deficit spending, properly so. This means there will be no room for Keynesian public works deficits. And the
Fed will do what it can to sabotage the Democrats, as Volcker did
to Carter and Greenspan tried todo to Clinton in 1994.

http://www.tigersoft.com/Tiger-Blogs/index.htm

My criticism of what you write is only that you fail to mention the trillion dollars wasted in Iraq and the world of enemies Bush has created. The Democrat who will try to right what Bush has wronged will lament his/her choice to become President in such an inauspicious era.

]]> By: gary marinin http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-3202 gary marinin Mon, 23 Jul 2007 01:17:15 +0000 http://www.dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-3202 how anyone can not say the federal reserve is the cause of inflation is beyond me. the more money they print, the more our government is buying, because they're buying the money from the federal reserve they pay interest on everyone of those dollars, automatically going into debt. the federal reserve is the cause of the depressions before and will be the cause of the depression in front of us. they intentionally inflate our economy and then recall tons of that money leaving many jobless and homeless. we should be printing our own money but that bastard woodrow wilson changed that. how anyone can not say the federal reserve is the cause of inflation is beyond me. the more money they print, the more our government is buying, because they’re buying the money from the federal reserve they pay interest on everyone of those dollars, automatically going into debt. the federal reserve is the cause of the depressions before and will be the cause of the depression in front of us. they intentionally inflate our economy and then recall tons of that money leaving many jobless and homeless. we should be printing our own money but that bastard woodrow wilson changed that.

]]> By: Zoner http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-895 Zoner Thu, 31 May 2007 17:24:53 +0000 http://www.dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-895 I've heard this argument before about money leaving one market after it crashes and entering another. How exactly does that work? Once a market crashes, money evaporates. Billions were lost in the 2000 market crash so how exactly does it simply jump over to another market. No, the reality is that the housing market was and is fuelled by borrowed money. Assets prices are being driven by credit - plain and simple. There's a big difference between credit inflation and monetary inflation. Credit has to be paid back. I’ve heard this argument before about money leaving one market after it crashes and entering another. How exactly does that work? Once a market crashes, money evaporates. Billions were lost in the 2000 market crash so how exactly does it simply jump over to another market. No, the reality is that the housing market was and is fuelled by borrowed money. Assets prices are being driven by credit – plain and simple. There’s a big difference between credit inflation and monetary inflation. Credit has to be paid back.

]]> By: rene arns http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-116 rene arns Sat, 05 May 2007 01:36:25 +0000 http://www.dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-116 WHEN TIME AND PRICE SHAKE HANDS. WHEN TIME AND PRICE SHAKE HANDS.

]]> By: Deadbeat http://dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-115 Deadbeat Fri, 04 May 2007 19:57:01 +0000 http://www.dissidentvoice.org/2007/05/post-mortem-for-the-stock-market/#comment-115 Yeah right. Didn't Whitney call the recent market dip in February the beginning of the end. Also inflation is NOT caused by the Fed printing dollars. While I agree with Whitney that the Fed pumping dollars into the economy is a cause for concern with the stock market. Because the rich are closer to obtaining those dollars and with the real estate market shaky it is likely to pump up the market. So there I agree with Whitney. However Whitney has also linked a market crash with the housing situation. There I disagree. Money fled the market to the housing sector after the 2000 bubble burst. So only certain sectors of the stock market got inflated from the housing activity. What I see is a shift to the stock market from real estate as that sector retrenches. Going back to inflation, what cause price inflation is the lack of market power by workers. The past 35 years has been one of wealth and power concentration. The fact is that the U.S economy is an oligopoly and therefore whether the fed is pumping money into the economy or not prices will rise as more of the necessities of life fall into the control of the few. Remember the bullshit of econ 101 is that full employment causes inflation. The reality of the energy shock of the 1970's should have put that fallacy on the trash heap of history. Also the devaluing of the U.S dollar helps to reduce the U.S. balance of payment. Also what attracts foreign investment to the U.S. is that it is a capitalist haven. The U.S provides far fewer social services to its workers and has curtail unionism. We also have a brainwashed society that loves capitalism and think that being a wage slave is a "fair" arrangement. I find Whitney when he discusses the economy to be no better than Robert Chapman is coming from the right. Both are alarmist and does not provide lucid analysis about the economy. IMO Robert Petras provides a much better analysis. See his article right here on Dissident Voice. So long as the U.S can continue to drive down the living standards of workers here and abroad and so long as citizens buy into nationalism, racism, Zionism and division then you'll continue see excellent results on the stock market. Yeah right. Didn’t Whitney call the recent market dip in February the beginning of the end. Also inflation is NOT caused by the Fed printing dollars. While I agree with Whitney that the Fed pumping dollars into the economy is a cause for concern with the stock market. Because the rich are closer to obtaining those dollars and with the real estate market shaky it is likely to pump up the market. So there I agree with Whitney.

However Whitney has also linked a market crash with the housing situation. There I disagree. Money fled the market to the housing sector after the 2000 bubble burst. So only certain sectors of the stock market got inflated from the housing activity. What I see is a shift to the stock market from real estate as that sector retrenches.

Going back to inflation, what cause price inflation is the lack of market power by workers. The past 35 years has been one of wealth and power concentration. The fact is that the U.S economy is an oligopoly and therefore whether the fed is pumping money into the economy or not prices will rise as more of the necessities of life fall into the control of the few. Remember the bullshit of econ 101 is that full employment causes inflation. The reality of the energy shock of the 1970′s should have put that fallacy on the trash heap of history.

Also the devaluing of the U.S dollar helps to reduce the U.S. balance of payment. Also what attracts foreign investment to the U.S. is that it is a capitalist haven. The U.S provides far fewer social services to its workers and has curtail unionism. We also have a brainwashed society that loves capitalism and think that being a wage slave is a “fair” arrangement.

I find Whitney when he discusses the economy to be no better than Robert Chapman is coming from the right. Both are alarmist and does not provide lucid analysis about the economy. IMO Robert Petras provides a much better analysis. See his article right here on Dissident Voice.

So long as the U.S can continue to drive down the living standards of workers here and abroad and so long as citizens buy into nationalism, racism, Zionism and division then you’ll continue see excellent results on the stock market.

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