Economy Failing/ Stock Market Booming?

Discussion in 'Financial Cents' started by Gopherman, Jul 19, 2016.


  1. Gopherman

    Gopherman Sometimes I Wish I Could Go Back to Sleep

    I've been wondering how the Stock Market could possibly be doing so well as the Economy falls down the toilet. 93+ million Americans are completely out of the Job market, no longer even looking.
    Malls are closing at an incredible rate, companies laying off workers, or cutting hours to part time.
    To me it just doesn't make sense!
    I found this article this morning,now I think I know why!
    Foreign ownership of US debt slips again in May

    Foreign ownership of US debt slips again in May

    [​IMG]
    July 18, 2016


    [​IMG]
    View photos
    FILE - This Wednesday, Oct. 16, 2013, file photo, shows the U.S Treasury Building in Washington. On Monday, July 18, 2016, the Treasury Department reports on foreign holdings of U.S. debt for May. (AP Photo/J. David Ake, File)
    WASHINGTON (AP) — Foreign holdings of U.S. Treasury securities fell for the second straight month in May.

    The Treasury Department says total foreign holdings dropped 0.5 percent to $6.21 trillion after slipping 0.8 percent to $6.24 trillion in April.

    Japan, the second-biggest foreign owner of Treasury securities, reduced its holdings by 0.8 percent to $1.13 trillion. China, the biggest foreign investor in Treasurys, increased its holdings slightly to $1.24 trillion.

    The national debt is nearly $19.4 trillion and is expected to grow, which means the United States will need foreigners to keep buying Treasury securities.

    Of the debt total, nearly $14 trillion is publicly traded on financial markets. The rest is money the government owes itself, including holdings in the Social Security trust fund.

    Hmmmmmm?
     
  2. oil pan 4

    oil pan 4 Monkey+++

    I fully expect the band to continue playing as the ship goes down.
     
    VisuTrac, Salted Weapon and Gopherman like this.
  3. azrancher

    azrancher Monkey +++

    OK, tell me when to sell...

    Rancher
     
  4. oil pan 4

    oil pan 4 Monkey+++

    I already sold, put pretty much everything into bonds funds.
    A precaution I take anytime I go overseas.
     
  5. Gopherman

    Gopherman Sometimes I Wish I Could Go Back to Sleep

    I would never presume to advise anyone on something like that, however, keep a close eye on it! In 2008 it dropped like a rock off a cliff.
    All economic forcasts are in the toilet, economy has not seen 3% growth in 7 almost 8 years, just seems like the game is rigged. Before, the market got the jitters when someone farted too loud, now we have Turkey, Brazil,Venezuela, Puerto Rico,
    Greece (never hear about them anymore),....... and no one bats an eye WTH???
     
  6. Motomom34

    Motomom34 Monkey+++

    According to the US Debt clock each citizen owes $161,651 to pay off that 19 trillion. That number always astounds me because that is every single citizen, young and old. I have heard that if the government took all the IRA's & 401K's that they could wipe out the debt. As for the economy failing, here in CO we do not see it. Our economy is booming and has been. We are in a housing, business boom. Houses are being snapped up within a few months of going on the market, all over priced. I read articles like the one linked and look around CO and think maybe I spend too much time on doom sites. But then I am good at basic math and know that the numbers do not add up. CO is in a bubble and when it burst it will be a mess.
     
  7. Gopherman

    Gopherman Sometimes I Wish I Could Go Back to Sleep

    I you had 14 Trillion dollars tied up in something and the ability to print as much money as you wanted, would you let your investment fail or would you prop it up by printing truckloads of Money? Also as a side note I'll even give you a propaganda machine the like of which the world has never seen, to sell your story for you. (MSMedia)
     
    Motomom34 likes this.
  8. ghrit

    ghrit Bad company Administrator Founding Member

    I saw one of those crashes, I moved to Leesburg VA in 05, right at the top of the RE market boom. Speculators were building el cheapo construction developments left, right, and center, and asking (and getting) outlandish prices for the housing units. I was tempted to buy, at the time no one could see an end. For one reason or another, I rented instead. The following year, the bottom dropped out. I believe there are still unsold units in that area. As much hiring as the feds have done, even zero cannot fill those houses. Well. maybe he can fill 'em up with "refugees."
     
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  9. Bandit99

    Bandit99 Monkey+++ Site Supporter+

    That's definitely a good idea but it won't protect you from this crash - frankly nothing will - well, land and gold will, but that's it.

    I'm thinking some time next year we'll come to the end of the road. My guess it will be linked to something else. Let's face it, this is our Achilles Heel and someone, somewhere will use it. The idea of Fiat money is actually a good one to increase supply - as long as you don't over do it! It scares the hell out of me because I remember the horror stories my Grandmother told me about the depression and this will be much, much worse and will probably end in another war, WW3, to pull us out of it. Fifty million died in the last World War and I'll bet 500 million to a billion will die this time... I guess I will go have a late breakfast now that I got myself sufficiently depressed.
     
    AD1 likes this.
  10. Ganado

    Ganado Monkey+++

    Good post @Gopherman. ... just keep watching foreign holdings decrease. as us petro-dollarl dollar fails, mire and more foreign governments are reducing their holdings of USD we are in for a big crash and what is propping it up atm...partially... are 401k's. people who gave their 401k trading in US stock market are probably going to wake with no retirement before the end of the year.
     
    Cruisin Sloth likes this.
  11. Yard Dart

    Yard Dart Vigilant Monkey Moderator

    Perfectly timed to crash in the fall after the elections.....to make it look like the Right caused the nation to collapse.... if Trump gets the nod. The left will just giggle at the mess they made. All to further grab for power, after the Right takes the blame for another collapse.
     
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  12. Gopherman

    Gopherman Sometimes I Wish I Could Go Back to Sleep

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  13. 3M-TA3

    3M-TA3 Cold Wet Monkey

    Remember how there was "no recession" even though it fit the criteria during the end of the Clinton Administration, but the day after Bush was inaugurated we had the "Bush Recession"...

    Trump, if elected, is walking into a sh!t sandwich, but he's the best prepared to deal with it.
     
  14. oil pan 4

    oil pan 4 Monkey+++

    The democrats never a saw a pile of other peoples money that they couldn't keep their hands off. Another fine example is the railroad workers retirement pension fund, they try to raid I mean federalize that program every decade or so. That's why railroad workers are almost all republicans.

    Remember when the idiot said something to the effect of "regular people are too stupid to manage their own 401k and the government needs to help/protect them from getting ripped off".
    I call BS on that. If legitimately stupid people can make money off fantasy sports then they can do the same thing with stock funds, its 5 or 6th grade math for god sakes.
    But the vast majority of people are obsessed with sh*t that absolutely doesn't matter in the grand scheme of things (celeberties and sports) and has no bearing on the condition of their quality of life.
     
  15. DarkLight

    DarkLight Live Long and Prosper - On Hiatus

    Democrats and I have one thing in common...we both believe we know best how to spend MY money!
     
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  16. Motomom34

    Motomom34 Monkey+++

    I also believe that eventually they will try to get their hands on all that retirement money that the working class has socked away. With the market cruising to record highs people are putting more in. I think (double wrapping my tinfoil) that is why the market is so high. If people have confidence, they will invest then bingo, the gov't will federalize.
     
    Gopherman likes this.
  17. Idahoser

    Idahoser Monkey+++ Founding Member

    no... there's nothing wrong with the money supply that it needs to be increased. All you do is give people the tools to steal.
     
  18. oil pan 4

    oil pan 4 Monkey+++

    I started to think that in 2008. The entire reason I started buying precious metals that I keep under my control.
    Since then I have put less in my on the books retirement plan and more into something I hold.
     
    Motomom34 likes this.
  19. Ganado

    Ganado Monkey+++

    You can do a self directed IRA that holds precious metals.

    Money id Like any other game, you have to know the rules to play the game... and play to win
     
  20. Which to me, is no different than a stock. Unless I can hold and posses it, I don't have true possession. One of those things that can just disappear overnight should someone with enough power deem an event (or whatever they choose to be the scapegoat) a 'national emergency'. They outlawed private ownership of gold once before... wonder why?
     
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