More economic GOOD News...DOW hits new record..on track to hit 17K.

[Chris]

Can anyone guess what will happen if we quit creating 75 billion a month out of thin air?

Not much.

Interest rates will go up.

 

[eagle1462010]

NYSE Margin Debt Hits Record $451 Billion; Watch Out If Rate Drops - Forbes

Margin debt hit a record $451 billion on the New York Stock Exchange in January, as investors borrowed more money than ever to buy into the post-financial-crisis bull market.

And that’s a good thing, for now. But rapidly rising margin debt can also signal a market top, especially if the rate of borrowing starts to drop below its 12-month average. That was a strong signal to get out of the stock market in late 1999 and 2007 — if 0nly investors had been able to see the data in real time. The NYSE margin statistics are released after a six-week delay.

The bottom panel shows the trend in net margin debt, or credit minus debt. History doesn’t always repeat itself, but the parallels to 1999 and 2007 are obvious.

PE's are not out of wack, so not to worry.

LOL

When those who are heavily involved tell you not to worry...........then that is exactly when you should.........

History simply will not repeat itself again and again and again THIS TIME...........

 

[Antares]

Can anyone guess what will happen if we quit creating 75 billion a month out of thin air?

Not much.

Interest rates will go up.

Uh sure
The system will crash, every time they even HINT at slowing it down everyone panics.

 

[Chris]

Can anyone guess what will happen if we quit creating 75 billion a month out of thin air?

Not much.

Interest rates will go up.

Uh sure
The system will crash, every time they even HINT at slowing it down everyone panics.

No one is panicing.

 

[eagle1462010]

Not much.

Interest rates will go up.

Uh sure
The system will crash, every time they even HINT at slowing it down everyone panics.

No one is panicing.

That is because the Federal Reserve is paying for the party.

Exactly why is borrowing so up and similar to the graphs of the past this time?

How much higher can the Pyramid go this time....................and how much borrowing is needed to sustain this 8th Wonder of the World....................

 

[Chris]

Uh sure
The system will crash, every time they even HINT at slowing it down everyone panics.

No one is panicing.

That is because the Federal Reserve is paying for the party.

Exactly why is borrowing so up and similar to the graphs of the past this time?

How much higher can the Pyramid go this time....................and how much borrowing is needed to sustain this 8th Wonder of the World....................

I agree. It is better to raise wages than use the Fed to stimulate the economy.

But Republicans won't allow infrastructure spending which will lower unemployment, they won't allow a raise in the minimum wage, and they hate unions which create higher wages as well. Anything that raises wages for the working man, Republicans are against. Why? Because Republicans only represent the extraction companies and the 1%.

 

[Faun]

Lefties, try looking for work Monday morning.

Get back to us when you find a job.

We can stand a few months of enjoying the sound of the crickets.

I have a very good job, so I can get back to you now. As far as everyone else, roughly 93.6% of those who want a job, have a job.

That figure is based on the total amount of people who the BLS categorizes as unemployed + all those categorized as not in the labor force but who want a job, out of the entire civilian non-institutional population.

 

[Faun]

Borrowing is out of control..............ALREADY.................

The Fed will not let it crash until after the elections.

"Deficits don't matter" ~ just another Conservative.

 

[eagle1462010]

No one is panicing.

That is because the Federal Reserve is paying for the party.

Exactly why is borrowing so up and similar to the graphs of the past this time?

How much higher can the Pyramid go this time....................and how much borrowing is needed to sustain this 8th Wonder of the World....................

I agree. It is better to raise wages than use the Fed to stimulate the economy.

But Republicans won't allow infrastructure spending which will lower unemployment, they won't allow a raise in the minimum wage, and they hate unions which create higher wages as well. Anything that raises wages for the working man, Republicans are against. Why? Because Republicans only represent the extraction companies and the 1%.

We've already tried that, but but but they used the money created to hook up buddies on both sides of equation. Didn't they?

Which they will do again as we increase the debt for it....................

But hey, we needed a High Speed Rail System in California to hell with fixing the levees that control 1/3rd of the water supply to California..............A very Demo state............

Party on dude....................

Minimum wage is a two edged sword. It cuts both ways.................Which a certain party usually doesn't want to talk about.

 

[eagle1462010]

Borrowing is out of control..............ALREADY.................

The Fed will not let it crash until after the elections.

"Deficits don't matter" ~ just another Conservative.

Some foolish Status Quo's said that and the left continues to Straw Man the subject. Typical.

I'm talking about private borrowing to hold margin and it is getting larger and larger and larger..........At what point does it break again.

And as another poster already stated, it breaks when the Fed stops inflating it.

 

[Antares]

Not much.

Interest rates will go up.

Uh sure
The system will crash, every time they even HINT at slowing it down everyone panics.

No one is panicing.

They haven't said they were going to stop yet.

 

[Fishlore]

The rising DJIA is indeed good economic news. For most of our history, good economic news was also good news for American society. The connection between growing economic strength and rising standards of living for our people has been succinctily described as "a rising tide raises all boats."

Alas, the linkage between the stock market and the paycheck ain't what she used to be. There are several reasons for this disconnection. The two biggest are "free trade" and productivity technology which dramatically reduces the number of worker hours required to produce a very broad range of goods and services.

There is a third factor, one which is perhaps the most important. For over a century we have had a consensus that the wealth produced by our economy was to be regulated by government policy as well as market forces.

The so-called conservative movement has fought for a generation to take the government out of the regulatory picture. Although the movement has been only marginally successful (taxes have been cut dramatically but entitlements have not been removed) the discrediting of government regulation/taxation has interacted synergistically with the purely economic factors to devastate the lives of most Americans by transferring more and more of the wealth produced to the large scale capitalists.

 

[blackhawk]

The Stock Market doing well is a good thing of course when it happens under a republican the same people who are championing it now claim it's all about the evil 1% getting richer off the backs of the poor and middle class.

 

[eagle1462010]

The Stock Market doing well is a good thing of course when it happens under a republican the same people who are championing now claim it's all about the evil 1% getting richer off the backs of the poor and middle class.

I for one do not champion the markets at all under either guise.......................

In 2000 we changed the rules that allowed the Markets to Go Postal, and created the environment for disaster.............................

The Graham Leahy Act took the SEC out of the picture to regulate trading, especially in vital Commodities which led to Shadow Trading out the Wazoo...............Leading to the crash on which the Too Big To Fail Banks loaned themselves 16.1 TRILLION at the Discount window of the Federal Reserve to do the same dang thing again.

I'm an electrician. We replaced the fuse without fixing the dang problem. There is a ground in the system, and we IGNORE IT TO OUR PERIL............

Unless you like paying more for commodities.

Commodity Prices - Price Charts, Data, and News - IndexMundi

 

[eagle1462010]

Take a walk down memory lane.................

The Arab Spring was about Skyrocketing Food Prices. Which went through the roof..........

Riots, instability spread as food prices skyrocket - CNN.com

"In just two months," Zoellick said in his speech, "rice prices have skyrocketed to near historical levels, rising by around 75 percent globally and more in some markets, with more likely to come. In Bangladesh, a 2-kilogram bag of rice ... now consumes about half of the daily income of a poor family."

The price of wheat has jumped 120 percent in the past year, he said -- meaning that the price of a loaf of bread has more than doubled in places where the poor spend as much as 75 percent of their income on food.

"This is not just about meals forgone today or about increasing social unrest. This is about lost learning potential for children and adults in the future, stunted intellectual and physical growth," Zoellick said.

Dominique Strauss-Kahn, managing director of the International Monetary Fund, also spoke at the joint IMF-World Bank spring meeting.

"If food prices go on as they are today, then the consequences on the population in a large set of countries ... will be terrible," he said.

He added that "disruptions may occur in the economic environment ... so that at the end of the day most governments, having done well during the last five or 10 years, will see what they have done totally destroyed, and their legitimacy facing the population destroyed also."

In Haiti, the prime minister was kicked out of office Saturday, and hospital beds are filled with wounded following riots sparked by food prices.

 

[blackhawk]

The Stock Market doing well is a good thing of course when it happens under a republican the same people who are championing now claim it's all about the evil 1% getting richer off the backs of the poor and middle class.

I for one do not champion the markets at all under either guise.......................

In 2000 we changed the rules that allowed the Markets to Go Postal, and created the environment for disaster.............................

The Graham Leahy Act took the SEC out of the picture to regulate trading, especially in vital Commodities which led to Shadow Trading out the Wazoo...............Leading to the crash on which the Too Big To Fail Banks loaned themselves 16.1 TRILLION at the Discount window of the Federal Reserve to do the same dang thing again.

I'm an electrician. We replaced the fuse without fixing the dang problem. There is a ground in the system, and we IGNORE IT TO OUR PERIL............

Unless you like paying more for commodities.

Commodity Prices - Price Charts, Data, and News - IndexMundi

I do agree with you on the to big to fail that's a major problem that should be obvious to all.

 

[Sallow]

That is because the Federal Reserve is paying for the party.

Exactly why is borrowing so up and similar to the graphs of the past this time?

How much higher can the Pyramid go this time....................and how much borrowing is needed to sustain this 8th Wonder of the World....................

I agree. It is better to raise wages than use the Fed to stimulate the economy.

But Republicans won't allow infrastructure spending which will lower unemployment, they won't allow a raise in the minimum wage, and they hate unions which create higher wages as well. Anything that raises wages for the working man, Republicans are against. Why? Because Republicans only represent the extraction companies and the 1%.

We've already tried that, but but but they used the money created to hook up buddies on both sides of equation. Didn't they?

Which they will do again as we increase the debt for it....................

But hey, we needed a High Speed Rail System in California to hell with fixing the levees that control 1/3rd of the water supply to California..............A very Demo state............

Party on dude....................

Minimum wage is a two edged sword. It cuts both ways.................Which a certain party usually doesn't want to talk about.

Wait, what?

When?

If you are talking about the New Deal, yeah it was tried. And it worked out great.

Up until 1980 or so when Reagan came to power and started reversing it.

And yeah, we DO need high speed rail and other infrastructure. Republicans are blocking the spending.

 

[Vigilante]

What Q2 GDP Weakness Will Be Blamed On








As we entered Q1 2014, hope was high that this was it - this was the quarter when, with stocks at record higs, employment data improving and a confident Fed tapering, the US economy would reach escape velocity and back we could all go to "believing" in the futures once again. The 2.6% growth expected at the start of Q1 quickly evaporated into a -0.5% contraction in the economy due to "cold" weather in the winter. Of course, the Keynesian-hockey-stick believers have marked up their "been-down-so-long-it's-gotta-bounce-back" Q2 expectations to 3.3% growth... so what could go wrong. One glimpse at the following chart will explain it all - and it's the weather that will be blamed once again...(with 48% of the nation now in drought conditions)......

What Q2 GDP Weakness Will Be Blamed On | Zero Hedge

 

[GWV5903]

Read it an weep gloom and doom conserverinos!

Dow Average and S&P 500 Hit New Highs
Stocks Notch Records as Beaten-Down Shares Mount a Rally

nvestors snapped up shares of companies large and small, driving major indexes to records and reviving beaten-down technology stocks.

The Dow Jones Industrial Average climbed 112.13 points, or 0.7%, to 16695.47, notching its second record finish in as many sessions and its third new high of 2014. The Dow notched 52 records in 2013.

The S&P 500 added 18.17 points, or 1%, to 1896.65, squeezing out its ninth record close of the year.

That along with a great April jobs report should really be making you folks cry.

Irony of the successful on Wall Street, I thought you were against successful individuals?

 

[Sallow]

Read it an weep gloom and doom conserverinos!

Dow Average and S&P 500 Hit New Highs
Stocks Notch Records as Beaten-Down Shares Mount a Rally

nvestors snapped up shares of companies large and small, driving major indexes to records and reviving beaten-down technology stocks.

The Dow Jones Industrial Average climbed 112.13 points, or 0.7%, to 16695.47, notching its second record finish in as many sessions and its third new high of 2014. The Dow notched 52 records in 2013.

The S&P 500 added 18.17 points, or 1%, to 1896.65, squeezing out its ninth record close of the year.

That along with a great April jobs report should really be making you folks cry.

Irony of the successful on Wall Street, I thought you were against successful individuals?

You folks and your conflations are hilarious.