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9000 is Now the Number I Hate the Most

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July 23, 2009 – Comments (12)

This market is a joke.  I love how the news manipulates information for their own gain.  Maybe it is all a conspiracy to prevent national chaos.  It doesn't take much brain power to see the evil behind every good news story.

So in the words of the movie Saw: I WANT TO PLAY A GAME.

For every news story that the media uses to show why the economy is improving I will retaliate and use that same information to say why the economy is collapsing.

 

Example: "U.S. Existing Home Sales Rise in Sign Sector Healing"

My Retaliation: "No really? Well when the value of homes decreases to nearly nothing, even the poorest of people can buy homes.  It doesn't hurt that homes in big cities like Detroit are now selling for less than some luxury cars"

 

Your turn! :D

12 Comments – Post Your Own

#1) On July 23, 2009 at 3:23 PM, davejh23 (< 20) wrote:

This article on home sales didn't mention the percentage of these sales that are foreclosures.  It mentioned that there was an increase in the median sales price, but didn't discuss the size of homes being sold...more larger homes selling for big discounts could have pulled the median price up...not a sign that home prices are up.  Inventory is down slightly, but they did mention the bank's "shadow inventory", so actual inventory is probably up...with many more foreclosures on the way.  Housing is NOT healing...just as we start to see real signs of healing, interest rates will be rising and homes prices will not reach 2005-06 level for 10+ years, as interest rates will stay at a more normal 7-8% after probably rising much higher than that.  Of course, massive hyper-inflation could help housing sometime in there.

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#2) On July 23, 2009 at 4:02 PM, mikecart1 (98.88) wrote:

#1 I agree man.  All you gotta do is take a drive anywhere in this country and see all the signs posted up on people's homes.  See all the moving trucks that are out moving people from houses to smaller houses or apartments.  Who does the media, yahoo, CNBC, and every other news channel think they are fooling?

Oh yeah, everyone... lol

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#3) On July 23, 2009 at 4:11 PM, bigpeach (29.33) wrote:

Why do you hate that the stock market is rising? Sounds like a positive to me.

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#4) On July 23, 2009 at 4:13 PM, divman1 (< 20) wrote:

The financial media and all the experts said buy buy buy all the way down. Then at S & P 680 they finally tell you to sell. Now with the market up 44% they are as bullish as ever.

Zero accountability.

They should all be in jail.

 

www.compdivplan.com 

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#5) On July 23, 2009 at 4:43 PM, mikecart1 (98.88) wrote:

#3, Because there is no basis for it.  Because the economy is actually a lot worse than they make you believe.  Because the media and news networks have so much influence on the market itself.  Just look at what 1 person can do to a stock overnight like Jim Cramer does daily.  Because the market is becoming less and less predictable because the movements have no logic and haven't had any for months.

#4, Agree 100%.  I am starting to believe the financial media is more corrupt than anyone could possibly imagine.  Just think if you had the control to influence millions of people.  The possibilities are endless.

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#6) On July 23, 2009 at 4:45 PM, guiron (20.35) wrote:

The financial media and all the experts said buy buy buy all the way down. Then at S & P 680 they finally tell you to sell. Now with the market up 44% they are as bullish as ever.

That's just the psychology of the market. CNBC is often good at measuring the psychology, but very poor at other types of market analysis. Bad financial analysis is nothing new. There are still plenty of bears, and I'm not hearing everyone saying the same thing. If you're investing based on what the "experts" are saying, and if you can't/won't do your homework, and if it's not helping you, then it's a safe bet you need better advisors. If you're basing your investments on people in the financial media, it's certain you need better advisors. But it's probably better still to do some research and learn how to take your own advice first, though that does take time and effort.

I mean, the first thing you have to do in situations like this is remember what Buffett said, "Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful."

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#7) On July 23, 2009 at 5:03 PM, TMFAleph1 (94.95) wrote:

Unfortunately, the bulk of financial media is very poor quality.

For a more sober look at today's milestone, take a look at my article on the front page of the Fool website:

As the Dow Breaks 9,000, What's Next?

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#8) On July 23, 2009 at 5:09 PM, bigpeach (29.33) wrote:

Because there is no basis for it.  Because the economy is actually a lot worse than they make you believe.  Because the media and news networks have so much influence on the market itself.  Just look at what 1 person can do to a stock overnight like Jim Cramer does daily.  Because the market is becoming less and less predictable because the movements have no logic and haven't had any for months.

I'll say what I always say when I hear comments like this. Rather than assume you are correct, and everyone else is wrong, you should question your own understanding. Perhaps the economy is not worse than "they" (whoever that is, sounds like a big brother reference) make us believe. Perhaps market moves are entirely logical, but you are unable to understand because you have your premises wrong.

Don't forget, the market is a discounting machine, not a camera.

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#9) On July 23, 2009 at 5:45 PM, XMFSinchiruna (27.50) wrote:

My turn, huh?

How about this take on housing. :)

 

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#10) On July 23, 2009 at 7:58 PM, rofgile (99.31) wrote:

I second bigpeaches comment - as an interesting thought exercise, pretend you are making the other side's argument for a while.  Do all the research you can to prove that things economically are improving.  Then compare that argument you are making with your original beliefs.  And if you are bullish, do the same and try to prove to yourself that the economy is going to collapse and do research to support it.

After doing this experiment, you'll at least have opened you mind and considered all the evidence with a clear head.  If you original thesis is still the most probable, that's great.  However, you have to take this really seriously, and not try to fail by proving the other argument wrong from the start.

 -Rof 

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#11) On July 28, 2009 at 2:25 AM, cbwang888 (25.93) wrote:

 

Comparing DJIA or SP500 with foreign currency, you can see why DOW 9K is not a suprise:

 

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#12) On July 29, 2009 at 3:24 AM, MGDG (34.96) wrote:

I don't have a TV and don't subscribe to a newapaper, so I hear very little of the noise in the media. I see there are very few constuction projects being worked on. I see the level of shipping activity continues to drop. I see the number of unemployed continues to rise. I see the revenue of most companies continues to fall. I see an increase in Alt-A mortgage resets coming due this year (which is 50% larger than subprime). I see huge sums of money being thrown at the Investment Banks, which is not being spent to create jobs nor lend to those business which could create jobs. I see Cities, States and Counties with shrinking tax revenue, which will cause them to cut services and/or raise taxes.

All of these issues are putting further strain on our consumer driven economy. Until we find a way to get consumers to spend money that they earn rather than borrow, or change to a production driven economy, I don't believe we will see a recovery.

 I saw on the news wire today that a Federal loan guarantee for a Uranium Enrichment plant in Ohio was denied. It's projects such as this that would create jobs and would have cost the taxpayers nothing more than a possible future liabilty if the project failed and the Feds would have to cover the loan.

I just don't believe giving cheap money to Investment Banks is going to propel us to a recovery from recession. I also don't believe continuing on a path of a consumer driven economy is a long term solution to prosperity. A nations wealth is determined not by selling pieces of paper back and forth between each other, but by what it can produce and sell from the resources contained within it.

 

 

 

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