I thought this should merit its own discussion. With the latest developments with the Fed buying $300 billion in treasuries and injecting a total of $1.2 trillion into the economy, what will we see long-term with the market? I thought the market would dip to the upper 5000's, and I still think it may happen once it eases from the good news the past few days. My prediction is that by the end of August, it will reach 5800 or so. But by the end of 2012, it will rise to 20000 and we'll face massive hyperinflation. The treasury is monetizing the debt. Bernanke has pretty much said that in Sunday's interview and today's announcement. There's no doubt in my mind we'll face inflation. I'll be keeping a close eye on gold long-term and SKF short-term as a result. I'd still be in trade mode rather than holding long. Your thoughts?
What can push it down to 5800? Can you elaborate? I think it will require the Chinese and Japanese to not buying any T-bonds and start selling them. If they just print their own money to counter our action, I don't think we can see 5800.
I don't understand the market at all i hope someone can explain to me didn't AIG goes up by like 100% the past few days? and Fannie and Freddie too? Aren't these companies essentially bankrupted?
Several banks claimed that they made a profit in the beginning of 2009. This plus bounce from the bottom equals 1000 points.
the government has made it pretty clear they're not going to let these groups fail. i think we've seen the bottom. or if we haven't, it won't go much lower than it already has this year.
Still have gotten to the credit card crisis that is looming. Once that occurs, we will be at the bottom.
no we won't. the credit card crisis is no where near what we went through with mortgages. credit card companies have been cutting lines for a while now...since about 2005...raising rates on others with little to no cause. it's a far more manageable problem.
