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  • The libs fail again, dow up 300 pts with NO signs of slowing [Edit or Delete]2 comments
    Dec 20, 2011 1:14 PM
    The libs still declaring war on Christmas, declaring war on Bernanke, still want to see economy fail, and  spread the wealth of the 1%. Today, Wall St. pushes back  by initiating a massive, unexpected Santa Clause rally, forcing shorts to cover en mass. Here comes dow 13000 end of year. We're gonna have pain at the pump to the extreme and record low labor force participation, but these things won't hurt the economy in terms of profits & earnings and consumer spending whatsoever.  
     
    We're still an economic boom, like it or not. Contrary to what you've read on the blogs, the consumer is NOT dead by any stretch of the imagination. Web 2.0 valuations also surging today. Home prices keep going up in my neighborhood. NO double dip, no crisis, no problems with economy. Fox news is right..the economy is fundamentally sound, Obama's anti-business policies notwithstanding. Keep buying stocks. 

    No 2 payroll tax cut. We need increased sales tax and elimination of capital gains taxes and tax cuts for high income earners, so they can keep contributing to the economy as they do today (but even more so). 

    The projected 1.7% decline in GDP from not passing the payroll tax cut is nonsense, too. It's some arbitrary number concocted by a liberal economist working for Obama. It's more like .17%. 

    The libs like Krugman and Peter Schiff yearn for failure, wealth destruction, and crisis because they are resentful of the successful and or because liberalism is a mental disorder. It's that simple.

    We're still in an era where all asset classes ranging from commodities, munis, stocks and high-end real estate will rise together. That's why losers like Bill Gross and Meredith Whitney keep getting it wrong. You can have a 3% rally in the dow, but treasuries will only fall 0-2%. And when the dow falls 1% , treasuries will rally 2%.

    Any bet against treasuries is doomed to fail. As the global economy booms treasury purchases via foreign governments, US government, institutional holders increases, providing downward pressure on yields  to compensate for the inflationary effect of a stock market rally. The net result is treasuries fall only slightly as stocks surge. On the other hand, if stocks fall and the economy goes into a double dip treasuries will rally due to the flight to safety trade. Furthermore, the Fed is set to buy $300 billion more Treasuries in next year. It's a low, low rate world.
     
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    Get Educated.

    "Goldman Sachs economic forecaster Alec Phillips estimated that allowing the payroll tax cut to expire would reduce growth by as much as two-thirds of a percentage point in early 2012. Macroeconomic Advisers estimates that it would reduce GDP growth by 0.5% and cost the economy 400,000 jobs by the fourth quarter.

    Mark Zandi, chief economist at Moody’s Analytics, went a little further, estimating that if both the payroll tax cut and extended unemployment insurance are allowed to expire, real GDP growth will fall by nearly a percentage point and about 1 million jobs will be lost by the end of 2012."

    Read more: http://bit.ly/sfzQKK
    20 Dec 2011, 09:19 PM Reply Like
  •  
    "The libs still ... want to see economy fail"

    I'm rather perplexed at this statement. There are at least as many "cons" who want to see the economy fail as there are "libs" who want to do so. In fact, perusing the comments here on SA and on Marketwatch and CNBC, it's filled with Obama-haters routing for the economy to collapse in the hopes that it'll get a republican elected next year. Then there are the denizens of libertarian Bernanke haters (who spend much of their time telling us how gold is The Answer to Just About Everything) who also hate Obama and his deficits. The only "libs" I see wanting the economy to fail are the tree-hugger types and anti-capitalists who generally hate economic growth anyway, but I don't remotely get the impression they outnumber the Obama-haters and Bernanke-hater gold-bug types.
    21 Dec 2011, 01:57 AM Reply Like
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