Not when it's only growth in prices.
Not when it's only growth in prices.
More on the topic of corporate debt levels, this time from Bloomberg in an article today:
Igy
Clarification for the retarded: GDP growth is good!
And lol Igy, it's obvious that REAL growth is negative. Completely fudged GDP figure gets to only 0.4%? LMAO. Good thing the government forced everyone to purchase uneconomic medical insurance that they didn't want, or else even the massively fudged number would be negative!
I'm joining a painting crew this afternoon, to get my hands dirty with the guys, who are actually doing real work, building real wealth. Of course, the tax assessments reflect the increase.
Stater,
Growth is not good if it is a malignant tumor. There are plenty of cancers in this economy but the Fed is afraid to use the scalpel. The patient (stock market) will have a long and painful death.
Igy
Maserati wrote:
w/w? Really? What does that tell you? Nothing.
If you think it's meaningful, then interpret it the right way: people can't afford houses, and those who can need to refi so that they can get cash out by claiming that they will use the funds to improve the property.
And hey, how about that Q1 GDP?
If this b.s. couldn't have serious effects on my life, it would be funny.
w/w data don't mean much, korreckt
but people can indeed afford houses - existing housing sales are stable and near the highest levels of the last 4 years anyway.
http://bloomberg.econoday.com/byshoweventfull.asp?fid=472390&cust=bloomberg-us&year=2016&lid=0&prev=/byweek.asp#topand a general index of housing market conditions is pretty solid too, again, at near 4 year highs.
http://bloomberg.econoday.com/byshoweventfull.asp?fid=472390&cust=bloomberg-us&year=2016&lid=0&prev=/byweek.asp#topMaserati,
Manual labor (painting, landscape rock removal) is good therapy for the ailment that comes from rational thinking in an increasingly irrational world.
We will have our day, none too soon.
Igy
Maserati wrote:
And lol Igy, it's obvious that REAL growth is negative. Completely fudged GDP figure gets to only 0.4%? LMAO. Good thing the government forced everyone to purchase uneconomic medical insurance that they didn't want, or else even the massively fudged number would be negative!
Welcome to the Twighlight Zone.
Stock futures pointed to a weaker start for Wall Street on Thursday, as investors assessed minutes of the Federal Open Market Committee and concluded there may be a few more hawks than they expected. Oil gave up gains and investors ploughed money into gold and the yen.
U.S. stocks closed solidly in the green on Wednesday, boosted by higher oil prices and minutes from the Federal Reserve's latest policy meeting, which showed a reluctance among members to raise interest rates as soon as April. Connor Campbell, financial analyst at SpreadEx said an April hike is off the table, but "the fact that there appears to be a slight increase in the number of hawks in the central bank (with some members open to an April hike) may have spooked investors," in a note to clients.
All the normal ingredients for an equities rally are there -- dovish Fed, small lift in oil prices -- but markets have also been dealing with hefty volatility since the start of the year and mid-February, said Brenda Kelly, head analyst, London Capital Group. "We remain at the mercy of the oil market and decisions on freezing or cutting on April 17th in Doha will likely set the tone for equity markets too," said Kelly, in emailed comments. She said potential for corporate defaults is another factor that appeared to be hitting sentiment.
"People" can't afford houses. They don't buy "a house", they buy "a payment".
And they can't even afford that, which is why they are re-fi'ing. Like I said, they re-fi at a higher amount and get cash out.
The other side of the coin is those who can actually buy a house, those who are older and downsizing, and who sell one property to buy another, and pocket the difference. One set of people gets real money while the other gets a payment.
"General index of housing market conditions"? As far as I can tell that link goes to only existing home sales. Ridiculous to look at that as a single factor.
Other things: you know who's buying houses? 3 kinds: 1) genuine homeowners, 2) speculators because the interest rates are so insanely low, and 3) those with money who are building a RE portfolio, and who own multiple properties due to either insanely low rates, or capital looking for a place to go.
In my experience, the relative population of (1) is dwindling in favor of (2) and (3). And even at that, your linked article mentions only existing home sales, not new home starts. Many in (1) are already in the market, just trading up because rates are so low, while replacement homes at the lowest end of the market are being picked up by speculators and RE portfolio'ists.
DJIA at 17.6k today, kind of a meh figure on a meh day.
POTO,
No disagreement that extraordinary central bank policy was necessary in the early stages of the financial crisis, but after seven years it is time to normalize rates. But as was outlined in the article that I posted the efficacy of QE will be debated for decades. The recent bout of QE in Europe and Japan seem to be backfiring with Japan and Europe markets down 17% and 10% respectively year-to-date.
Igy
Is this thread really about anything? The DJI has a down day 47.5% of the time. Is this really news? Why isn't there a thread titled "Up goes the Dow"? That would actually be more newsworthy than "Down goes the Dow", since the Dow goes up more often than not. Or, for the sake of argument, if you think that the lower frequency event is more newsworthy (why would one think that?) why wouldn't you have a thread called "Nowhere goes the Dow" for those rare days when the Dow does absolutely nothing?
Or better yet, how about a thread that says "I did a coin flip today and it landed on its edge". That would be newsworthy.
Down to about 17.5k now, still meh.
More proof that nobody has any money to spend: tons of people aren't paying back their student loans.
And look for that to increase dramatically.
One more thing: the bankruptcy rate among seniors. Know why? Because they don't have the money to pay their debts.
Bernie is doing well lately, that is newsworthy. He needs better than 52.5% of the remaining delegates. Down goes Bernie.
Interesting. Did you ever think about the fact that there are an even number of Electoral College votes - there could be a tie vote (269 - 269). That would be more likely than the Dow having a nowhere day. Of course, in that outcome the contest would be thrown into the House (which would be a lock for any Republican except Donald Trump). Unless of course Trump "persuaded" one of the electors to vote faithlessly before the votes were recorded in December.
Nohillary wrote:
Bernie is doing well lately, that is newsworthy. He needs better than 52.5% of the remaining delegates. Down goes Bernie.
Interesting. Did you ever consider that ultimate war on women would be Bill Clinton as First Man? I am sure he would be more than willing to screen all female interns, and handle the ordering of Cuban cigars.
Bill will be bored. Perhaps he can help run a hedge fund such as Eagle Vale Partners (managed by his son-in-law). I don't think Bill would have a problem knowing how to handle insider information issues (and, unlike Hillary, he could easily keep his activities out of the public eye by channeling them through an encrypted server set up in his closet in Chappaqua - Hillary's big mistake was in not encrypting her own server).
Nohillary wrote:
Interesting. Did you ever consider that ultimate war on women would be Bill Clinton as First Man? I am sure he would be more than willing to screen all female interns, and handle the ordering of Cuban cigars.
If that Hilary dude was my wife, and I couldn't divorce her for whatever reason (prob. financial), I would cheat on her like you have never seen.