How Does "Fed Floods Market With Dollars..." = Rally

PtrainerNY · October 13, 2008, 2:15pm

Let’s see… Individuals won’t invest. So the government takes tax dollars from people to invest instead. The market goes up… This is all a disruption. The market should be between a buyer and seller not the government trying to set a higher price

bigwilly · October 13, 2008, 2:20pm

I believe in Free Markets, BUT there is a time when the markets get so out of whack that the Gov’t NEEDS to intervene to restore faith in the system and to stop the blood shed. Ptrainer you must be a Billionaire if you want this bloodshed to continue and are not in the business… I dont know how you would get any pleasure out of this unless your were Net Short…

psn0706 · October 13, 2008, 2:27pm

This rally will not last long. Q308 earnings expectations are not low enough.

bigwilly · October 13, 2008, 2:31pm

I agree it won’t last long…we need small positive days for at least a week or so to build confidence in retail investors.

PtrainerNY · October 13, 2008, 2:48pm

bigwilly Wrote: ------------------------------------------------------- > I believe in Free Markets, BUT there is a time > when the markets get so out of whack that the > Gov’t NEEDS to intervene to restore faith in the > system and to stop the blood shed. Ptrainer you > must be a Billionaire if you want this bloodshed > to continue and are not in the business… I dont > know how you would get any pleasure out of this > unless your were Net Short… I am not getting pleasure out of this. But it’s better to take the pain now then delay it for later… when it will be worst

equity_analyst · October 13, 2008, 2:48pm

Stock look cheap on a forward PE basis, but Street numbers are woefully behind the curve. It will be the E that takes the market lower over the next several months.

cfa_gremlin · October 13, 2008, 3:00pm

"but Street numbers are woefully behind the curve. " Of course they are. Like always. It’ s pathetic. People that rely on big street houses for insight and analysis always lose their azz.

former_trader · October 13, 2008, 4:47pm

bigwilly Wrote: ------------------------------------------------------- > I believe in Free Markets, BUT there is a time > when the markets get so out of whack that the > Gov’t NEEDS to intervene to restore faith in the > system and to stop the blood shed. Then they should also intervene on the way up, when there are bubbles.

gangrel · October 13, 2008, 4:55pm

I’m guessing they will. I don’t expect the government to hold these large equity stakes for an extended period of time. When (if) the market does heat up, I would think these positions will (I hope gradually) be liquidated. As far as future bubbles, are you advocating government shorting in overheated industries? Not sure if that is the way we should go, either…

JoeyDVivre · October 13, 2008, 4:59pm

bigwilly Wrote: ------------------------------------------------------- > I believe in Free Markets, BUT there is a time > when the markets get so out of whack that the > Gov’t NEEDS to intervene to restore faith in the > system and to stop the blood shed. Ptrainer you > must be a Billionaire if you want this bloodshed > to continue and are not in the business… I dont > know how you would get any pleasure out of this > unless your were Net Short… What if he enjoys watching his neighbor get whacked worse than him?

bigwilly · October 13, 2008, 5:08pm

Then he won’t mind when I run over kick him in the b@lls and roll on teh floor laughing and then go over to his neighbor and kick him twice as hard .

JoeyDVivre · October 13, 2008, 5:11pm

Good point. PTrainer?

bigwilly · October 13, 2008, 5:56pm

Isn’t there a saying, “A kick in the b@lls is better than two kicks in the b@lls”? Something similar