Fed buys $3.5 billion in Treasurys

revolver

In economics term, the key is real growth rate. that means nominal growth rate minus inflation rate.

Economy is expanding when real growth is positive, and stock prices go up.

Economy is contracting when real growth is negative, and stock prices go down.

ybgx

21# revolver


I assume this conclusion is based on some "stable currency"?  Othewise, I have to agree with Jim Roger's view that in theory you can print enough money so the stock market based on dollar will go up though the value of dollar is nothing.  Please clarify on this.  Thanks!

revolver

22# ybgx

It's not like that, Jim Rogers was only joking in this case.

This time FED is not able to print out of the coming depression.

layschips

17# 纽约的鱼

don't take it serious lar, just one option lar, see my signature lar
economic crisis can lead to political crisis if bad enough, which introduces government down,  war (civil war or against other countries), or separation (like CCCP)

layschips

21# revolver

I'm not sure about this either. see 高通胀下的几个股市：by dividend_growth

either way, it would be a big mess...

dara

21# revolver

I'm not sure about this either. see 高通胀下的几个股市：by dividend_growth  

either way, it would be a big mess...
layschips 发表于 2009-6-11 11:31

Though I do not agree with dividend_growth' example, (in his example, he gave those countries with the fastest economics developing, clearly US has no growth right now, so his example means nothing).

But 高通胀 means stock down, I am not so sure, at least material stock would not down,

ybgx

25# layschips


I agree 100% that it's a mess and it will continue to be a mess.  Just curious what kind of mess it will eventually become :-)

colderdown

26# dara

well, there are different causes for inflation and there will be different outcomes regarding equities.

ybgx

28# colderdown


That's sounds like a always right universal truth.  Care to elaberate for some enlightening?

revolver

United States - game over!

colderdown

27# ybgx


This may help.
http://blog.hutong9.com/space.ph ... o=blog&id=12003

ybgx