G-20 refuses to back US push on China's currency

[CardSharp]

Also the markets are subject to various manipulation. One of the main reasons Bernanke opted for QE2 was to lower to short-term bond yields and juice up the stock market (at least temporarily)

 

[bandit]

More low IQ rants. Whether a company is listed or not on the stock market has nothing whatsoever to do with physical production. Stock prices fluctuate by the second, is a company doing better or worse by the second? The stock market is a way for companies to quickly raise capital through selling partial ownership, but it does not represent real value in any way, no physical wealth (products created using the classical factors of production) is created.

More evidence of the stock market being a worthless indicator of the economy: the Chinese stock market has been continuously dropping while the GDP has been increasing. Even more evidence that the stock market is a worthless indicator of physical wealth.[/quote]

So you read a paragraph off wiki and try to convince us that a stock market does not represent reality and is a mere farce, why not suggest your brilliant high IQ plan to your government, ask them to stop wasting money on such useless things as capital markets and build more planes instead.

[quote] Stock prices fluctuate by the second, is a company doing better or worse by the second[/quote]

Now you are really straining the limits of your IQ here, read through this and please try to understand why prices fluctuate 'by the second' as you put it, it is the information that gets reflected instantaneously and that is what causes price movements. a cornerstone of efficient markets; this is why insider information is so much coveted on the street.

[quote]•[U]Share prices adjust within an arbitrarily small but finite amount of time and in an unbiased fashion to publicly available new information, so that no excess returns can be earned by trading on that information. [/U]
•Semi-strong form efficiency implies that Fundamental analysis techniques will not be able to reliably produce excess returns.
•To test for semi-strong form efficiency, the adjustments to previously unknown news must be of a reasonable size and must be instantaneous. To test for this, consistent upward or downward adjustments after the initial change must be looked for. If there are any such adjustments it would suggest that investors had interpreted the information in a biased fashion and hence in an inefficient manner.
[url=http://www.moneyscience.com/Information_Base/The_Efficient_Markets_Hypothesis_(EMH).html]The Efficient Markets Hypothesis (EMH) | Information Base | Financial Intelligence | MoneyScience[/url]
[/quote]



[quote]Also the markets are subject to various manipulation. One of the main reasons Bernanke opted for QE2 was to lower to short-term bond yields and juice up the stock market (at least temporarily) [/quote]

Slight correction, Fed is buying up long-term treasuries and not short term thereby pushing up their price and decreasing corresponding yields, short term interest rates have been near zero since late 2008. Primary motive of this is to decrease borrowing costs and induce banks to lend since they are already sitting on 1 tn + of money.

 

[redfox]

Factual inaccuracies first- US debt is not 18 trillion; I dont know how you pulled up that number, it is $13,860,774,000 or 13.86 trillion. So no red ink for you tonite, better luck tommorow.

http://treasurydirect.gov/govt/reports/pd/pd_debtposactrpt_1011.pdf



Equity stock pensions are paper wealth- okay, so where does real wealth lie?
Could you also elaborate some more on the over-valued part, you must have a logical reason to make that statement, if you are right I'll short sell the S&P 500 and share half of the profits with you, of course if you are right and the market is supposed to crash.
If the reasoning is somewhere along the lines of the 'paper wealth' example you just gave, even a bucket of salt cant make me digest the statement you made

Lets do a simple math here.. US deficit $14 trillion + Quantitative Easing 1 ($1.7 trillion) + Quantitative Easing 2 ($4.6 trillion) + 3% on foreign purchased of US treasury bonds (2.7 trillion x 3%) = $20.4 trillion in deficit.

U.S. National Debt Clock : Real Time

The Federal Reserve Does Quantitative Easing II. QE1 Cost $1.7 Trillion And Had Small Returns

The Fed's QE2 Misadventure Will Cost U.S. Households $4.6 Trillion

United States Treasury security - Wikipedia, the free encyclopedia

Yes, when in doubt and in debt spend more! This how US promote and provoke its economy. And the US stock market is only a reflection to this.

If all else fails, we can start by blaming the illegal Mexican crossing the border taking our jobs, the Chinese for trade deficit, the Indians for so many outsourced jobs and Sarah Palin can see Russia from her backyard, so it must be to Russians!