And now for something completely different ...

DJI closes above 16,000

http://www.usatoday.com/story/money/markets/2013/11/21/dow-16000-first-time/3663531/

 

My portfolio is looking great!

 

The higher it goes, the faster and harder it will fall.

Its a ponzi scheme and they gotta sucker in the last bit of people before they yank their money out and laugh on their way to hookers and blow.

 

My fingers on the trigger, if I see the slightest anything it'll be a fire sale.

 

Stop the QE and the whole house of cards will collapse.

 

Nah. Trillions of greenbacks being loaded into banks and corporations couldn't *possibly* cause stock prices to skyrocket (and the greenback's value to plummet in comparison), could it?

 

So what happened to all the hyperinflation that QE I, II and III was to bring about?

 

You mean all that cash that's sitting in the overseas banks, corporate balance sheets and government contracts?

Have you seen an uptick in lending? Have you seen an uptick in new home construction, new vehicle sales, durable goods sales? No? So all that funny money that's been printed *isn't* in circulation? Hmm, and who would think that bolstering cash reserves and keeping the market starved of cash would be a good thing?

Can you think beyond the end of your own nose?

 

Its not what happens while the money is being printed, as its not being distributed to the people. Its what happens when the gravy train runs out.

Sooner or later either a. QE is going to have to be ramped up as the economy falters, just like a drug addict who needs a higher and higher dose to sustain the high or b. People are finally going to realize just how much $$$ is being pumped into the system and start wisening up.

Its too late to do anything about it but place yourself in a position where its going to hurt the least amount.

 

New car sales are up to 15.5 million from a low of 10.4 million.
New housing starts have been up in 2013
Home loan lending is up.

In general economic indicators are up, not down like you say.

 

So if QE does not create inflation, what is the downside. How does the economy falter due to QE?

 

Notice anything?

 

Yes.

 

Good for you guys. The only uptick in construction I've seen here is multi-family developments and government projects. The single family home market is still pretty damn flat here, and even the remodel market is slow other than self-funded small projects.

 

I know many live in absolute fear of inflation. What is the impact of deflation on the economy?

 

That your chart is for British pounds... are you suggesting we change currencies to the pound note?

 

Can we take turns asking meaningless questions?

 

Can I be next?

 

Fuck. Sorry about that.

Can't find the one I saw earlier, but here's a nice Wiki article with an attached chart showing the near-flatline M1 vs. the M2. I'd probably have to chart the dollar valuation over currency myself, and I really don't give that big a fuck about proving it.

http://en.wikipedia.org/wiki/File:MB,_M1_and_M2_aggregates_from_1981_to_2012.png

 

I wouldn't be too worried about single family homes being a sole indicator of much of anything, depending on your location.

As the US population continues to grow, multi-family housing will become more necessary. Otherwise our transportation issues will continue to get worse and worse. We need higher density housing to keep the workers closer to the jobs, shopping, entertainment and public transportation.