Dow 12,000 and Beyond

The party is over. Dow will suffer major blows as the summer passes becuase all of the 'growth', whether it was in the GDP or the dow, is just inflation. The Fed's inflation numbers do not reflect the reality of the double digit inflation that is actually occurring, and everyone in the media nad the govenrment simply reports what the government is saying, thus misleading many people while the smart money is moving out. High oil prices are becuase of speculation or supply.demand problems? Hogwash. Oil, rice, grains, and other commodities are high because of inflation. Commodities are the first places that the common man sees inflation take place. Its all smoke and mirrors, folks. When the money supply starts to dry up because the Fed must raise interest rates, the Dow will collapse because its 'growth' is all priced in inflatiable dollars. The US hasn't seen real growth in most industries in years, and now the party is over. The alternative? The Fed keeps interest rates low, and our creditors worldwide begin to dump them, causing a massive flood of dollars and mega-inflation. The Fed has no choice: its 1981 all over again, interest rates will rise and the dow will collapse at first, but recover in a few years based on sane and correct mathematics.

i'm all for free markets but face it, a failed investment bank is nobody's friend. all the fdic is asking is for a more organized way to wind down a failed investmernt bank rather than the scramble to save bear stearns. there is nothing in place so folks think any attempt to salvage them is a bailout for the bank - no that is not the case, it it to protect everybody else who did nothing to get severely impacted through no fault of our own. once the fed opened the window to the investment banks, its now my tax dollars @ work. i'm not asking them to shy away from the markets, they serve a very important of raising capital, but there is too much black box accounting. transparency w/ proper regulation, more or less compliance w/ existing laws, should be enough. that has been the problem w/ the wall street banks - no transparency, no regulation.

It depends on what you mean by regulation. I've invested in companies with good underlying fundamentals and lost while I watch other companies with horrible fundamentals grow. In some sense I feel like Wall Street is a Pozzi scheme. So I turned to the housing market which definitely was a Pozzi scheme. I think there should be transparency. Information that only Real Estate agents have should be made public. It's getting better with sites like Zillow.com and eappraisal.com, but I don't know how reliable that data is.

CC: This is off topic, but I just listened to your June 06 segment on 'Office Secrets and Lies'. A great follow-on to that would be a piece on politicians who run for one office while holding another position. To me it is akin to stealing and is very unethical. Obama, Clinton and McCain are sitting Senators who have spent too much time on the campaign trail while getting paid to do their jobs. Why do we as constituents not seem to care? Should we have a law that requires them to quit first? (I want that). Has anyone else talked about this? Regards, e

CC: The last thing this country needs is more control by Uncle Sam. The pinheads (got that from Oreilly) in Congress know very little about business, the importance of profit or what capitalism means. All they seem to be soing is promoting socialism while running for office. The paradox is how they get reelected with less than a 20% approval rating, but that's another story.

I agree with Justin's comment. However, a commodity bubble is being created with oil leading the way. This is because you need oil to produce most anything that's tangible. This is a deliberate scheme to provide investment banks and hedgefinds etc. a way to recoup losses incurred in the sub-prime fiasco. Myth's like Peak Oil and CO2 emissions being the primary driver for climate change are there to reinforce this scam. This is being done at the expense of millions of "non-players" who need to fill up their gas tanks and feed their families. We are about to enter the worst times this country has ever seen. If and when we come out of it, let's hope that ethics as well as transparency in both business and government have taken a turn for the better. That shouldn't be too hard because any movement from where were at would have to an improvement.

That's all fine and dandy about not regulating them. At the same time anyone who invests with them and then loses all their money, well they were greedy and put up the cash knowing it was high risk. The fact that the taxpayers of this country are bailing these people out is, in my opinion, a criminal act by our government.

No regulation. Instead, let people eat their loses and stop printing up money. When you do away with the consequences of bad investment, you destroy capitalism and bring in socialism for the well connected, at the expense of the American tax payer (through the hidden tax of inflation). I was up today. People need start trading their dollars for things with actual value. When cash turns into trash, you have to protect yourself. Commodities are where it's at and will continue to be.