William (aka Bill the Godfather)

William (aka Bill the Godfather)

Wednesday, October 14, 2009

The DOW breaks 10k

Wall Street cheered today as the stock market broke over the 10,000 mark (DOW Jones Industrial Average). I suppose it's nice to have clawed our way back to where we were 10 years ago.

I feel so much better off now. Don't you?

In the meantime the dollar lost 20% of its value against foreign currencies (US Dollar Index) during the Bush Administration and after a short lived rally over last fall / winter during the great panic of '08 it has resumed its slide. The dollar is down around 16% since March! In the stockmarket a comparable slide would be worrisome. But when your currency drops 16% in six months that's a giant neon sign flashing a one word message...


Reactionary said...

Where are the earnings supposed to come from to support these higher share prices? What in the fundamentals has changed, I mean, other than politically-mandated wealth transfers to Wall Street and General Motors?

Sucker's rally.

edwin sanchez said...

Sometimes I feel like everybody treats the market as such an abstract impersonal concept… and it is in a sense. It represents the supply and demand of money free for investing I suppose. But what about the pure heart of it - at the core of the stock market isn’t it just someone giving someone else money to do something with it in return for a portion of the hoped for profit?