âThereâs a large amount of money on sidelines waiting for investment opportunities; this should be felt in market when âcheerful sentiment is more firmly intrenched.â Economists point out that banks and insurance companies ânever before had so much money lying idle.â -August 28:, 1930 http://www.ritholtz.com/blog/2009/09/1930-money-on-the-sidelines/
I really like the money on the sideline theory, Haha Remember back in late 2007 they were throwing that phrase around, it worked so well, didn't it??? Only fools believe the money on the sidelines waiting to be put to work and push the markets to ultimate levels theory. Idiots.
Been trading for 11 yrs Heard that phrase for 11 years On one side you have people/ bank saddled with bad debts... and on the other side your always gonna have "money on the sidelines" The Net of the 2 is the key
No question the most overused phrase on fraud street. THE ONES SHOUTING THAT PHRASE FROM THE ROOFTOP ARE THE ONES LONG WANTING TO SELL TO THE SUCKERS WHO ARE LATE TO THE PARTY. I WAS SHORT IN LATER 2007 AND WORRIED WITH MASSIVE HYPE THAT SAID THE MKT WAS THE CHEAPEST IN HISTORY AS CO'S HAD 1/3 THE TOTAL MKT CAP OF THE MKT IN CASH AND PRIVATE EQUITY WOULD BUY EVERY CO OUT. the hype gets highest right before big hits to the mkt. for instance hardly an analyst thinks we can correct more than 10% much less ever in our lifetime see new lows. watch out when you get this kind of confidence.
The doom and gloom abounds among the geniuses that populate ET.... they talk about how the consumer is tapped out and never will recover... which consumers exactly? The ones worth millions with their houses paid off and Cadillacs in the driveways? The bottom 15% that cycle between mental hospitals, jails, apartments, jobs, unemployment, welfare? They are an economic drag in boom times even!! There are plenty of consumers that don't have debt, are working, etc... they are smart enough to know that you save in bad times, you don't expand... I know some of them, they are cautiously buying things right now not because they are in an expansive mood but because there are a few bargains around... when the economic climate goes back to a more normal temperature they will be spending a little more... And the amount of investment money on the sidelines is astronomical... investors might be waiting to see if Obama's next step is a coup led by ACORN or something.. they might be waiting to see if BO Pelosi and Company are going to bring Hugo Chavez in as Chief Economic Adviser or something... maybe after these kooks collapse and get laughed off the world stage everybody can breathe a sigh of relief, discount the commie factor and get back to work making an environment that families can thrive in.. jeez, we are in an economic crisis and the politicians are taking this little break from the movie to try to take over a sixth of the USA's economy!! Brilliant!!
you're obviously a f'n fool tea bagger. Obama is as republican as your little Shrub. Shrub played to the oil lobby. Obama is owned by the banking lobby. Insufferably stupid People like you are the real problem. Not obama or the mad shrub.
Umm, I'm thinking the "plenty of consumers" you reference are going to have a hard time shouldering the burden of the "The bottom 15%" as that group grows in numbers to 25-30%. Maybe it is doom and gloom, but I see the 15% dramatically increasing in numbers and the other group falling. Simple things like gas at $5.00 to $6.00 a gallon, or mandatory healthcare taxes on small businesses, etc... or some combination can trigger the collapse of the working-middle class.
There is money on the sidelines if you look at sovereign wealth funds. The US current account deficit has created a situation where major exporting nations have huge amounts of US dollars that they should be recycling into the US capital account. They are not doing this due to the uncertainty from government intervention. So, yes there is at least a couple trillion in liquidity that could be injected into the US economy outside the government and federal reserve.