There are always people willing to play the arbitrage game. Here in Canada BCE has been sold for $42.XX a share. Despite repeated assurances by the buyers that the deal will go through in April at that price, the stock is trading well under that for months.
Those are government statistics and they are pure fiction. They vastly underestimate the situation. Unless you are prepared to believe Americans have stopped eating, driving and importing goods. That aside, I'm talking about real inflation ie the increase in the supply of money (which has been in the double digits). Higher prices are just the symptom of inflation. Have a look at the US dollar Index. It's lost 10% of its value just in 2007 and it's lost another 6% just this year. That is inflation
i was only correcting u. U've said $2 is better than nothing if BSC declares bankruptcies. Market saying it worth more than $2.
You are correct on that. However, what I am saying is that 16% de-valuation of US currency is going to translate into inflation here in US soon or the stock market will have to go down to reflect the currency situation. Also, you mention that Dow 30 are comp with a lot of international exposure also (most of Dow companies anyway). I also agree on that. However, that means the international business will also suffer. Also, the inflation figure is a total magic number which is pull off the air by our gov. I want to say that US econ is in trouble and it will be for a lot longer (either we will be in HELLary or BRROKE country). I think you agree with that. However, I feel you and I disagree on the extend of the trouble US is in. May be you have more trust in US gov. As some one lives in US and as an Actuary, I don't. Don't get me wrong. It is a future we are guessing here and I do repect your ideas and posts. I enjoy reading your post and I am glad that it is you hurting my feeling and I can smile at it.
Heh Heh. Same here. Though, I'm not trying to hurt your feelings I'm just very unhappy about what Americans have done to themselves and the consequences it's going to have for us up here as well. Try learning Chinese when you are tone deaf! My wife is giving up on me.
What do you mean by learning chinese when you are tone deaf? It is not that bad. Which method is she trying to teach you to pronounce? the mainland (roman pronouncation) or Taiwanese (phonic or JuYin) method? Just think of every charactor as a sound. Here is a joke for you. The other day, I went to my friend's house to pick up his daughter for dinner. (Cooler and Pete, She is pretty and it is not what you think.) His wife told me he went to YMCA. I mistaken it as (number is the sound) Yai(3) Mein(3) Si(1) Yan(1) (out side smoking). I was shock to hear that he smokes. I asked "When did he started?" She did not realized that we were not on the same page and replied, "A couple years already". I ask, "a whole pack?" She has no idea what I am asking at that point and I realized I made a mistake. I explain it to her and we laugh so hard.
Just trying to learn spoken Mandrin (She's from Taiwan). She says the four 'levels' and it just sounds the same to me. I'm also my own worst enemy though. When I first started to get the hang of it alittle she had me get on the phone and say a few words to her mom. I really didn't want to talk but I managed to string together the phrase "Ling doesn't cook or clean the house". Sadly, she wasn't able to rip the phone away from me soon enough but, she was on time to get about a half hour long lecture from her very traditional mother about the importance of being a good wife and taking care of her husband!. Once she hung up she informed me that Madrin lessons are over. No big deal I suppose, all my friends speak Cantonese anyways.
Yeah well the wife didn't think it was all that funny. I'm glad this came up though it's reminded me I need to buy a longer couch.
My humor of the day Cost of iraq war: 1.86 trillion US 2007 GDP: 13.5 trillion US banks derivatives: 180 trillion looking at your bank shares: Priceless (literally)
things have definitely calmed down since that rate cut. It looks like the Bank of England will also announce a rate cut soon also which will great for those with a mortgage but not so great for those with savings! The banks to watch out for are the Icelandic banks. They are in a very precarious position and in some ways look less stable that Bear Sterns. Time will tell I guess!
coz gov'ts want to save the reckless gamblers and the super riches, not the prudent investors and regular joes.
I just want to bring up a very good example and I think Fed has in the back of their mind and on the worry list. Look at the Japan in 90s. The Japan bank rate was near 0 and saveing interest rate was about 2% APY. After yesterday, US Fed rate is at 2.25% and every bank I got and every other bank I see, best CD rate is at about 3%. My concern is not if but when will US Fed bring the fund rate down to 1% level. Because Fed has already throw the inflation worry right out of the door at this point.
since u had this brought it up. i too have that outlook on US economy sometime after the dotcom debacle. US economy will stagnant just like after japan's asset bubble. US might fare a bit better since americans are born spenders and japanese are born tight wad savers.
Just want to add, the regulars joes' jobs suck. I want to bring up 1 small point. It is not a good healthy economic when you have stock market growth of 10% yr over yr while the GDP is less than what, 3 or 4% growth? Eventually the GDP growth have to catch up to reflect the market growth or the market has to correct itself to reflect the reality. My take on this is, just the beginning. US GDP growth has slow down since late 90 while stock market keep going up. Is the correction over? I say, it is your call, my guess is as bad as yours.
