Ford now on junk bond status and my stock market prediction
- Thread starter DonSSDD
- Start date
Bob I don’t do politics, but are you predicting Biden will win? You are a bold man. Maybe make that prediction over on the politics forum?
Bob I don’t do politics, but are you predicting Biden will win? You are a bold man. Maybe make that prediction over on the politics forum?
Hell no! If he wins, America loses! I just mean that I'm sure somewhere he has a microphone in his hand telling all the lemmings how he's going to fix everything! RIGHT! Dementia joe couldn't fix a sandwich!
I don't really know much about the markets. However, it seems to me that during Obama's last term the markets started increasing without a real explanation of how the economy could support the increase. It continued with Trump also. The jobs helped with Trump, however I still wondered. Now with this insane borrowing, printing, and giving away all this money, and they want do it again, I cannot see how the market cant crash, and or we get hit by inflation big time.
Inflation BIG time!!!
I hope we are both wrong.
Yes me to.
We’ve had the inflation already in some areas, lots of it, real estate values- commercial and residential, stock market prices, and look at auto pricing.
Not big wage increases for low and middle incomes. That was “inflation” back in the 70’s?
They found a new way to measure inflation, they called it “core inflation “ and threw out a bunch of stuff. Gas prices, house prices, auto prices, insurance, groceries, it all went up a lot. But somehow “core inflation “ stayed around 1-2% annually. BS. It kept people from asking for wage increases due to Inflation. But, because stock prices went up, senior management got huge wage increases and huge bonuses. CEOs making $5 million now made $50 million.
Our gas price has gone up 50% from the low in March.
The interest rates are so low, all savings is chasing the stock market. Government debt costs are so low, they have so much debt, rates can’t go up. If interest rates go up, debt costs for government would go through the roof and the money that would come out of stock markets would be astronomical. We are stuck at these low rates for the rest of my life.
Central bankers are now buying up corporate bonds issued by business, and paying government rates “to keep the markets liquid and working”. By doing this they are also controlling interest rates in the fixed rate market, keeping them at government rates.
The US 10 year fixed rate has bounced down into the 0.40% to about 0.80% range. Invest $1 million there and in a year you earn about $4-8,000.
Japan has had this low rate and government support thing going for 20-30 years, just treading water. Germany and other euros have negative rates.
Not big wage increases for low and middle incomes. That was “inflation” back in the 70’s?
They found a new way to measure inflation, they called it “core inflation “ and threw out a bunch of stuff. Gas prices, house prices, auto prices, insurance, groceries, it all went up a lot. But somehow “core inflation “ stayed around 1-2% annually. BS. It kept people from asking for wage increases due to Inflation. But, because stock prices went up, senior management got huge wage increases and huge bonuses. CEOs making $5 million now made $50 million.
Our gas price has gone up 50% from the low in March.
The interest rates are so low, all savings is chasing the stock market. Government debt costs are so low, they have so much debt, rates can’t go up. If interest rates go up, debt costs for government would go through the roof and the money that would come out of stock markets would be astronomical. We are stuck at these low rates for the rest of my life.
Central bankers are now buying up corporate bonds issued by business, and paying government rates “to keep the markets liquid and working”. By doing this they are also controlling interest rates in the fixed rate market, keeping them at government rates.
The US 10 year fixed rate has bounced down into the 0.40% to about 0.80% range. Invest $1 million there and in a year you earn about $4-8,000.
Japan has had this low rate and government support thing going for 20-30 years, just treading water. Germany and other euros have negative rates.
I used to worry about the national debt but I realized that neither side in Congress has any intention of paying it off. It's just a game they play for voter consumption to make them think they are concerned. Ever since Nixon decoupled the dollar from gold we have had Fiat currency. We don't have to pay the debt but if we wanted to we just print more money from thin air and paper. There, wasn't that easy? If China or other holders of our debt call it in same thing.....print more to pay it off or just stiff them and say tough noodles Charlie, we ain't payin......
The national debt is meaningless so why worry about it?
The national debt is meaningless so why worry about it?
Only thing I always try to keep in mind in regard to the markets whether stocks or commodities.
A bull market trades what MIGHT BE and a bear market trades WHAT IS.
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Latest speculation is the Fed will start buying stocks, if buying bonds from loser corporations doesn’t work.
So Phil, when the Fed ends up owning Ford, GM, etc. what will you taxpayers do with it/them?
The Fed and Congress keep dicking with capitalism and supporting losers who should go the way of the dodo?
If they start buying stocks, they may end up owning everything, sorta like communism?
So Phil, when the Fed ends up owning Ford, GM, etc. what will you taxpayers do with it/them?
The Fed and Congress keep dicking with capitalism and supporting losers who should go the way of the dodo?
If they start buying stocks, they may end up owning everything, sorta like communism?
If the US government gets all, or a controlling interest in any auto company it will go out of business.
They said GM paid it all back Skip.
