Quote Originally Posted by JakeMartinez
My local Wal*Mart.

Why do you think we're still on the downward spiral, then?

I think it's the fact that we haven't addressed the myriad of root causes to our crisis...we're just treating the symptoms for now. I think we might hit some serious inflation issues in the near future, what with adding 700 billion to the money supply, which (at the end of the day) will equal roughly 6.3 trillion dollars in new money based on the fractional reserve system.

I attached a chart of the U.S. money supply...see that huge spike once you get to where we are now? That's not a good thing.
Well the problem is that 700 billion hasn't been added YET! And we are just now finding out how those funds will be used. In addition to this the problem is not just a local problem; it is an international problems and many of the World banks and governments have also just passed bills to put forth a bailout bill similar to the US. I believe Germany is proposing 500billion, Great Britain is only putting out like 70 Billion, and so on and so forth.

Until the entire international community puts those funds to use as well (they are in the same boat as us) then we will see a stagnant market at best. Currently the market is 'reacting' to something they shouldn't be.

There will be another decline soon. This is a short spike and we are sure to see it drop off again. I anticipate the Dow stabilizing somewhere in the 8500 range.

In addition to this who wins the election will play a major factor in what will happen to our stock market. Another reason I am very much against Obama. People don't realize that taxation on corporations directly effect everyone underneath.

YEAH!! let's stick it to those people that pay for our jobs, that pay for research and development of new goods, that give us benefits (well large corporations anyway). Let's screw those people who work in a competitive free market where they must compete against other companies to provider as low of a marketable price as possible!!!

Oh wait.. if we tax them more and hurt their profit lines.. then they'll have to protect their investors or else they'll back out of their companies. So let's cut pay scale, let's cut jobs, let's cut back on research and development, let's scale back what benefits we'll offer, and we'll have to raise the price of products to compensate for the taxation that's to come.

In addition, people don't realize that many small businesses do make more than 250k a year. I believe people have a misunderstanding what actually identifies a small business as a small business. It is these same small business owners that have recently been accounting for 70% of new jobs created in the United States.

Let's kiss that good bye.

These are all factors that also will affect the market.

We will know more about the economy in general once the US and the rest of the world are on the same page; we will know even MORE about our National economy once the election is over; which honestly I think to some degree the market is reacting to that as well since people have convinced themselves Obama will win the election (and maybe he will.. who knows; he does have the lead currently).

I have more I want to what effects us outside of what I've stated currently; but I'm pretty worn out and this is getting long winded. Maybe I'll come back and post a follow up.