Who exactly is buying?

[S2007S]

To answer the original posters question

This is it.

http://www.cnbc.com/id/100735821


This article just post a little while ago and it says the same thing I have been writing about for months.....glad someone else is noticing it just like me.

 

[TILT2]

Quote from mutluit:

Prior to the bursting of the credit bubble, the public was shocked to learn that our biggest investment banks were levered 30-to-1. When asset values fell, those banks were quickly wiped out. But now the Fed is holding many of the same types of assets and is levered 51-to-1! If the value of their portfolio were to fall by just 2%, the Fed itself would be wiped out.�
http://www.forbes.com/sites/greatsp...-crisis-will-be-hellish-and-its-on-its-way/2/

So, the govt is forced to manipulate the market, otherwise it must declare bancruptcy....

Because the market is manipulated by the computers and can only go under the designed or pretermined model. Once the trend starts, it won't finish until the trend is completed. That's the only reason of market's going up.
Who programmed or designed the model? Ask the US government, Barrack Obama, or Ben Bernanke. Because the US stocks can't fall(collapse), if it falls, everything else will fall one after another, that's the crumbling of the financial world. Check the chart in 2011 and compare with the 2008, you will find it should have been collapsed in 2011, but the price action in the week(26.11.2011 - 03.12.2011) has changed the pattern because they have programmed the model to alter the trend.
I could be banned here, but I have to speak the truth out.

 

[hayman]

Quote from Nine_Ender:

I guarantee you the US fed wouldn't bat an eye if markets dropped 15%. This is NOT their focus. They are focused on the economy and jobs, still relatively weak but getting better. You are confused about what the market represents. It's companies and their profits/balance sheet, which largely add wealth to those who can afford to participate by owning those companies.
[/B]

Boy, I couldn't disagree with you more. The economy is weak, and being heavily manipulated by the FED. This is blatant altering of the laws of supply/demand, and we all know what happens when the forces are manipulated with......things will not end well here. When that is, nobody knows, but my guess is the shit will hit the fan and bubble will burst when some major Economic bankruptcy (or equivalent) occurs. The dominoes will start falling in unison at that point, and the force downward will be unstoppable.

Companies are lean and mean, hiring is minimal, and as long as EPS and PPS are rising, no one complains. Seniors getting screwed with their ZERO percent interest rates? Bernanke couldn't give 2 shits. If either EPS or PPS start falling, the FED will be EXTREMELY concerned, as corporate America and Wall Street will start screaming. Sure, Bubble Ben hoped that this mad-scientist experiment would create jobs, but it is highly unlikely that it has had any sort of appreciable effect in this area. He has hooked the addicts with money printing, and the addicts keep coming back for more. If he was to stop supplying, the addicts would go into severe withdrawal, and you would see a massive crumbling. He is in waste deep, and his only Exit strategy at this point will be to retire come the end of the year (and probably go into hiding), as the next poor idiot will be left holding the bag, and catching the shit for this destructive policy.

 

[luisHK]

Nine Ender is back, we need to call back bicycle boy to get a full picture

 

[Visaria]

100-150% increase from the lows in 4-5 years isn't gigantic, it's quite the norm. Just check out a 100 year long term chart of the S&P 500 (or Dow). Look at the major lows and major highs.

Please note, it's fine to bitch and moan and share opinions on forums like this. Let off steam, rant and rave like a madman all you like. Good to let it all out, right?

However, it should in NO WAY affect your decisions regarding investing/trading. The market dynamics are what matters.

 

[hayman]

Quote from Visaria:

100-150% increase from the lows in 4-5 years isn't gigantic, it's quite the norm. Just check out a 100 year long term chart of the S&P 500 (or Dow). Look at the major lows and major highs.

Please note, it's fine to bitch and moan and share opinions on forums like this. Let off steam, rant and rave like a madman all you like. Good to let it all out, right?

However, it should in NO WAY affect your decisions regarding investing/trading. The market dynamics are what matters.

My rants aren't about trading and making money....totally separate issue. Mine are about economics and what the ramifications of these FED actions will mean for all of us and my children. To me, this is nothing more than a Ponzi scheme that is out of control.

 

[Visaria]

You can explain to the kids why they there's no money for their college education by telling them "but i thought it was a Ponzi scheme!".

I'm sure they will understand.

 

[hayman]

Quote from Visaria:

You can explain to the kids why they there's no money for their college education by telling them "but i thought it was a Ponzi scheme!".

I'm sure they will understand.

To the contrary, I will be able to tell them how the entire nation is bankrupt, how we used to be denominated by the Dollar, and that guy serving a double-life sentence used to manage an entity called the FED. Should make for some great bedtime stories for my kids' kids.

 

[Ash1972]

Quote from Visaria:

You can explain to the kids why they there's no money for their college education by telling them "but i thought it was a Ponzi scheme!".

I'm sure they will understand.

This is exactly the sort of stupid gloating you hear near all time market tops. People have completely lost the ability to think rationally.

Right now Ben and his printing press etc. is a MEME that has lodged itself into people's brains (just like the new economy etc. in 1999/2000) and is being used to justify their herding instinct. They are piling into the uptrend simply for FEAR OF MISSING OUT on gains. This is a herd with its brains decidedly switched off.

Unfortunately humans' only concept of the future is to extrapolate the recent past. It's easy to see why after 4 years of exceptional gains people think this will go on forever.

If mutual fund managers are 90% bullish - the most optimistic reading on record - doesn't that tell you something?

We are in the midst of a stock market mania against a backdrop of serious economic stagnation. Doctors who reanimate people dying of cancer by pumping them with steroids and adrenalin will now be hailed as geniuses.

 

[ammo]

Quote from hayman:

My rants aren't about trading and making money....totally separate issue. Mine are about economics and what the ramifications of these FED actions will mean for all of us and my children. To me, this is nothing more than a Ponzi scheme that is out of control.

fed gives money to banks,changes rules so they can get the funds,banks take money and manipulate market,earn back losses,pay back fed,then keep manipulating markets,money to be used to restart economy,loans,going into banks manipulating markets,banks won't kill golden goose until new laws are implemented