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2008-08-09 Home Front Economy
US stocks surge on 'watershed' rise in the dollar
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Posted by lotp 2008-08-09 00:00|| || Front Page|| [1 views ]  Top

#1 "the violence of the move was testimony to the extent to which the market had been surprised by economic weakness outside the US"

For better or worse, the US economy IS the world economy. We catch a cold, other countries get pneumonia.

Economic weakness outside the US never surprises me.
Posted by Barbara Skolaut">Barbara Skolaut  2008-08-09 01:13|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/]  2008-08-09 01:13|| Front Page Top

#2 Two words: irrational exuberance. The US banking system is still upside down with huge portfolios of worthless mortgages, and guesses as to how much range from a very mild trillion dollars to as much as three trillion, and if bad paper handling does not improve for the banks, double that to six trillion.

How the dollar does on the ForEx is strictly ceremonial. At some point, everyone will realize that there isn't enough money in the entire GDP to carry the busted banks, then said institutions will not be able to hide their condition behind Bernanke & Co any longer.

A US economic crash WILL severely damage the world's economies, because we ARE tied to all of them, but the reverse is NOT true, and there is no way those central banks can save the US banking system.

Hang on, it ain't over 'til it's over.
Posted by Rivrdog">Rivrdog  2008-08-09 03:11|| http://rivrdog.typepad.com]">[http://rivrdog.typepad.com]  2008-08-09 03:11|| Front Page Top

#3 Investors are more likely now to invest in potentially lucrative technology stocks rather than in developers of luxury condos. The Game industry is under acceleration. Potentially, there could be another computer technology boom. Restaurant chains are closing, but - as usual - Deli stores boom in a recession, as consumers search for lower cost luxuries. Smarter consumers make a better economy.
Posted by McZoid 2008-08-09 03:13||   2008-08-09 03:13|| Front Page Top

#4 What actually happened today, and has been happening for several weeks, is that the short people have had to retrench. It took just a few of the bigs bailing out of the petroleum futures market to cause the short sellers to have to respond to margin calls, and they are still digging up cash to do so, so there is a temporary reversal of fortunes.

Note that all that has occurred is a slowing of shorting - there isn't any huge amount of cash flowing into long positions. The owners of the equities sold short have a cash surplus due to the margin calls on the shorties, so they are buying bargains on the Street, but that is all that has happened.

The fundamental problems caused by a hyper-inflated housing market contracting haven't played out yet, and may be only a third through that agony.
Posted by Rivrdog">Rivrdog  2008-08-09 03:20|| http://rivrdog.typepad.com]">[http://rivrdog.typepad.com]  2008-08-09 03:20|| Front Page Top

#5 In other words, for the non-goldbugs amongst us,
memememememe.... hummmm....

WE'RE DOOMED!



All news, it is bad.

Posted by .5MT 2008-08-09 07:09|| www.cybernations.net]">[www.cybernations.net]  2008-08-09 07:09|| Front Page Top

#6 There is no flight to the $ because of fighinting in the FSU and the threat of lower EU interest rates. It's an illusion. We're doomed. Worst economy in 50 years, I had to feed a kitten this morning! Can you believe it? A kitten, hungry in this great country of ours!
Posted by .5MT 2008-08-09 07:11|| www.cybernations.net]">[www.cybernations.net]  2008-08-09 07:11|| Front Page Top

#7 As the lefty writer Tom Robbins put it, "The situation remained the same, desperate as usual..."
Posted by M. Murcek">M. Murcek  2008-08-09 09:12||   2008-08-09 09:12|| Front Page Top

#8 Given that the 'old day's of Europe are not behind them, it was all a smug self important dream, money is going to move to more certainty. Regardless of shortcomings and deficiencies in the American system, its more secure geo-politically and contractually. The Americans are having a family fight about exploiting their own energy resources, the Euros have no similar domestic resources to tap. Puty made a reality wake up call.
Posted by Procopius2k 2008-08-09 09:24||   2008-08-09 09:24|| Front Page Top

#9 Too much pessimism in this thread for me. There is still lots of capital out there and whether they invest in America, Europe or Asia they look at risk and return. All you pessimists tell me if you
had to make big capital investments with the lowest risk and the highest return where would you make them? China? UK and Europe? Middle East? USA?
Posted by Jack is Back!">Jack is Back!  2008-08-09 10:43||   2008-08-09 10:43|| Front Page Top

#10 Why JIB, why even bother making a major investment in anything, anywhere. Buy gold, platinum or Tritium if you can get a license. Don't get caught with FIAT money WTSHTF if you catch my drift.

Also Old Masters are a good investment but a good factory Cuban is even better, again if you can get a license.

Yep, Whiskey, ammo, antibiotics, fishhooks and enough diesel to power your typewriter that a small sliver of western civilization might live thru the coming age of low gravity. Mark my words, things gonna get ugly, then worse, hell dirt sandwiches will be something only the rich elites can afford.

Buy my book, borrow my agenda. Send your worthless FIAT money to me.

Posted by .5MT 2008-08-09 14:00|| www.cybernations.net]">[www.cybernations.net]  2008-08-09 14:00|| Front Page Top

#11 For .5MT:

Posted by lotp 2008-08-09 14:02||   2008-08-09 14:02|| Front Page Top

#12 ROFLMAO, that's muh gig.
Posted by .5MT 2008-08-09 14:18|| www.cybernations.net]">[www.cybernations.net]  2008-08-09 14:18|| Front Page Top

#13 lotp, you channeling muck4doo these days?
Posted by Hupiling the Galactic Hero1106 2008-08-09 19:42||   2008-08-09 19:42|| Front Page Top

#14 One Word: Plastic Lithium
For Ship, 1000mg/day. For the rest, stocks.
Posted by ed 2008-08-09 19:53||   2008-08-09 19:53|| Front Page Top

23:53 Bangkok Billy
23:33 CrazyFool
23:30 bman
23:18 Johnathan Arbuckle
23:00 badanov
22:45 Old Patriot
22:35 ed
22:26 Steve White
22:18 Pappy
22:14 Chuck Simmins
22:09 phil_b
22:08 Chuck Simmins
22:06 Chuck Simmins
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21:48 ed
21:43 linker
21:25 Barbara Skolaut
21:23 3dc
21:22 Steve White
21:21 macofromoc
21:07 ed
20:55 ed
20:46 USN,Ret.
20:42 3dc









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