Rumorville

Discussion in 'Economics' started by the1, Mar 1, 2011.

  1. There are so many protests happening around the world these days, I wouldn't be surprised if the *corrected* rumor from China was true...
     
    #11     Mar 1, 2011
  2. schizo

    schizo

    Why would China want to suppress the riot, let alone stop from being broadcast all around the globe? It would be in their own interest to spill the beans as it were.
     
    #12     Mar 1, 2011
  3. the1

    the1

    Ummm....I think your looking at the wrong measurement of the money supply. Perhaps the one attached will make it a little more clear.

     
    #13     Mar 1, 2011
  4. kashirin

    kashirin

    instead of being tired you should force you brain to work a little

    so you maybe heard Bernanke wanted higher stocks? Actually I thnik he wanted higher house prices

    Although you should know desired assets grow faster than not desired
    so if we rate assets they will be in the following order
    1. commodities
    2. stocks
    3. housing

    Bernanke takes credit for high stock prices but denies for commodity. But it's just impossible in this economic situation

    either he is responsible for commodities or not responsible for stocks

    in both cases he is just a liar
     
    #14     Mar 1, 2011
  5. the1

    the1

    <i>"Bernanke takes credit for high stock prices but denies for commodity. But it's just impossible in this economic situation"</i>

    Isn't this the truth. He publicly stated higher stock prices would generate a "wealth effect" but as inflation pushes stock prices higher it also pushes commodity prices higher. There's always a trade-off. The markets are very efficient. Yes, you are richer, assuming you are actually in the markets, but it's going to cost you more at the pump and the grocery store so are you really richer?

    There's another major flaw with The Bernank's strategy. The public is just getting back into the stock market now. Mutual funds do their buying and selling at the end of the day and if you've been watching the markets closely lately you would have noticed the markets have been going vertically upward during the last 30 min's. There is strong participation from the retail investors now...now that we've probably topped. Oops. So much for the wealth effect.

     
    #15     Mar 1, 2011
  6. Bakinec

    Bakinec

    How possible is the scenario where Benji plans on deflating the American debt through deflating the dollar through inflating Benji's supply?
     
    #16     Mar 1, 2011