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Sucker rally. A big decline is coming. DOW will probably stabilize around 8,000 and S&P around 900. Just my $0.02 prediction.
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Yup. I don't think the imbalances and misallocated resources that existed prior to the collapse were allowed to correct themselves because of government intervention. It seems like we've effectively prolonging these imbalances and most likely making the resulting effects that much worse. The stock market is an emotional beast and not really a good indicator of the underlying economic factors that are at play. So, I don't get all worked up when it starts climbing with no real measurable correction to the key issues that brought it down to begin with. Not to mention that every penny of stimulus represents a NEGATIVE rather than a positive. I don’t believe the Sate can create wealth. It can only destroy or, at best, redistribute it. Physics tell us 100% efficiency in anything is not possible. The same applies to this example. Even if our genius central planners were able to doll out money with 100% efficiency and zero waste, we are still ignoring the core issue. The so called “stimulus” does no more than redistribute private wealth and defer repayment to future generations. Christ, we are spending the paychecks of unborn American workers and no one seems to care or understand.
Don't fret... the Keynesians are having a blast playing out their theories and experiments with your money and future. Respectable scientists conduct their experiments in a controlled environment. Economists conduct theirs on the population, in real time.
