| Ostro said: I don't understand anything about this but I find it a little shocking that Dow Jones and DAX (that German thing) are on record breaking routes although economy and the whole world is supposed to be struggling at the moment. Doesn't make much sense to me. Like people saying video games are doomed although this last generation was the biggest ever. It sounds like lame advertisement so people buy more and more... |
some people have the idea that somehow a high dow = prosperity and it doesn't. Every time the market begins to sell off Bernanke goes and ups the stimulus. He has said if the economy gets worse he is gonna up it again, even though they are printing more than the entire yearly budget deficit each year. Well if you slap rats around every time they hit the sell button, they're gonna stop hitting it. This has spread worldwide now, every country is lowering interest rates even economies that really don't need to. Many economies have ridiculous stimulus like Japan and the UK that are rapidly decreasing the value of their money. Bonds are worth nothing anymore, so people are rushing into stocks, even central banks are moving lots more of their money from bonds to stocks. That is why there is a disconnect between world markets and the reality on the ground. The world economy is not doing very well, but most markets are hitting 52 weeks highs over and over.
currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X
