Where is the Bottom to Dow Jones?

Closed Thread
Thread Tools
  #76  
Old 08-22-2020, 07:34 AM
dewilson58's Avatar
dewilson58 dewilson58 is offline
Sage
Join Date: May 2013
Location: South of 466a, if you don't like me.......I live in Orlando.
Posts: 11,502
Thanks: 834
Thanked 9,687 Times in 3,600 Posts
Default

Quote:
Originally Posted by Stu from NYC View Post
According my barber it will be the first Thursday after the first Friday of a month to be determined



I will listen to your barber if he/she gives nice cuts.
__________________
Identifying as Mr. Helpful
  #77  
Old 08-22-2020, 07:36 AM
tvbound tvbound is offline
Gold member
Join Date: May 2020
Posts: 1,070
Thanks: 1,934
Thanked 1,707 Times in 557 Posts
Default

When it comes to the current markets and stocks, I'm with this guy.

Market Crash 2020: Warren Buffett Is Ready to Pump In $146.6 Billion


"The market cap-to-GDP ratio, also known as the Warren Buffett indicator, suggests that the equity markets are significantly overvalued. This ratio stands at an astonishing 179%, which means the U.S. markets are trading at a premium of at least 79% and need to correct significantly.

There is too much uncertainty surrounding global economies and the market recovery makes little sense. It is based more on investor optimism rather than fundamentals, and you can see why Warren Buffett is taking a cautious approach to investing right now."
  #78  
Old 08-22-2020, 08:47 AM
Stu from NYC Stu from NYC is offline
Sage
Join Date: Feb 2020
Posts: 12,438
Thanks: 1,161
Thanked 13,939 Times in 5,278 Posts
Default

Quote:
Originally Posted by dewilson58 View Post
I will listen to your barber if he/she gives nice cuts.
Wish I had more hair to spend more time having it cut so as to listen to him pontificate on world affairs
  #79  
Old 08-23-2020, 10:00 AM
Paper1 Paper1 is offline
Gold member
Join Date: Nov 2011
Posts: 1,099
Thanks: 23
Thanked 106 Times in 42 Posts
Default

Quote:
Originally Posted by retiredguy123 View Post
The national debt reaching a record has absolutely nothing to do with the stock market. The debt reaches a record every day. That is because the Government spends more money than they take in every minute of every day. Here is a link where you can watch your tax dollars going down the drain in real time all day long, 24/7.

U.S. National Debt Clock : Real Time
I believe national debt has everything to do with Market. If the country was forced to balance it's budget in 2021 and Fed stopped printing money and buying debt I believe the market would tank, no crash. Our entire economy is now dependent on deficit spending, to say that is not propping up market is not logical. Our generation will never see bank CDs pay 4% again. IMHO
  #80  
Old 08-23-2020, 10:33 AM
retiredguy123 retiredguy123 is offline
Sage
Join Date: Feb 2016
Posts: 13,953
Thanks: 2,275
Thanked 13,420 Times in 5,110 Posts
Default

Quote:
Originally Posted by Paper1 View Post
I believe national debt has everything to do with Market. If the country was forced to balance it's budget in 2021 and Fed stopped printing money and buying debt I believe the market would tank, no crash. Our entire economy is now dependent on deficit spending, to say that is not propping up market is not logical. Our generation will never see bank CDs pay 4% again. IMHO
My comment was about the national debt reaching a "record". The debt reaches a record high every day, and the economy has been dependent on deficit spending almost every fiscal year for the last 100 years. Yes, deficit spending does prop up the market, but that is nothing new. I would love to see the country balance the budget, but the budget is controlled by Congress, who are elected by the voters. And, most voters have no interest in a balanced budget. The chance for a balanced budget in 2021 is about zero.
  #81  
Old 08-23-2020, 12:12 PM
Stu from NYC Stu from NYC is offline
Sage
Join Date: Feb 2020
Posts: 12,438
Thanks: 1,161
Thanked 13,939 Times in 5,278 Posts
Default

Quote:
Originally Posted by retiredguy123 View Post
My comment was about the national debt reaching a "record". The debt reaches a record high every day, and the economy has been dependent on deficit spending almost every fiscal year for the last 100 years. Yes, deficit spending does prop up the market, but that is nothing new. I would love to see the country balance the budget, but the budget is controlled by Congress, who are elected by the voters. And, most voters have no interest in a balanced budget. The chance for a balanced budget in 2021 is about zero.
We have had a surplus during the second Clinton administration. Combination of both sides working together.

Unfortunately 9 11 happened and both parties decided lets run deficits all the time.

At some points deficit spending is good to help the economy but when they do it all the time spending gets out of control and inefficient govt spending crowds out small companies (from borrowing) who are the engine of our economy.

After the virus is under control we do need to get govt spending under control and at least run a balanced budget.
  #82  
Old 08-23-2020, 12:51 PM
retiredguy123 retiredguy123 is offline
Sage
Join Date: Feb 2016
Posts: 13,953
Thanks: 2,275
Thanked 13,420 Times in 5,110 Posts
Default

Quote:
Originally Posted by Stu from NYC View Post
We have had a surplus during the second Clinton administration. Combination of both sides working together.

Unfortunately 9 11 happened and both parties decided lets run deficits all the time.

At some points deficit spending is good to help the economy but when they do it all the time spending gets out of control and inefficient govt spending crowds out small companies (from borrowing) who are the engine of our economy.

After the virus is under control we do need to get govt spending under control and at least run a balanced budget.
The problem is that it is too late for a balanced budget, unless you are looking at gradually reducing spending over 10 or 20 years. If you forced a balanced budget in one year, I think the unemployment rate would increase to over 50 percent, and you would need to reduce Government pensions, Social Security, Medicare, and military spending drastically. And, the stock market would crash. That is because Congress has already spent money for many years into the future. The only way to balance the budget is to default on money that has been obligated. My opinion.
  #83  
Old 08-23-2020, 01:21 PM
Stu from NYC Stu from NYC is offline
Sage
Join Date: Feb 2020
Posts: 12,438
Thanks: 1,161
Thanked 13,939 Times in 5,278 Posts
Default

Quote:
Originally Posted by retiredguy123 View Post
The problem is that it is too late for a balanced budget, unless you are looking at gradually reducing spending over 10 or 20 years. If you forced a balanced budget in one year, I think the unemployment rate would increase to over 50 percent, and you would need to reduce Government pensions, Social Security, Medicare, and military spending drastically. And, the stock market would crash. That is because Congress has already spent money for many years into the future. The only way to balance the budget is to default on money that has been obligated. My opinion.
I agree cannot do it at one time must be done gradually. They need to set a target date and make it a requirement that the deficit comes down so much a year until balance is achieved.

Than it would be nice if they continued acting responsibly running a surplus to pay down the debt.

Do I think this will happen. Unfortunately no.
  #84  
Old 08-23-2020, 01:27 PM
retiredguy123 retiredguy123 is offline
Sage
Join Date: Feb 2016
Posts: 13,953
Thanks: 2,275
Thanked 13,420 Times in 5,110 Posts
Default

Quote:
Originally Posted by Stu from NYC View Post
I agree cannot do it at one time must be done gradually. They need to set a target date and make it a requirement that the deficit comes down so much a year until balance is achieved.

Than it would be nice if they continued acting responsibly running a surplus to pay down the debt.

Do I think this will happen. Unfortunately no.
The requirement you are suggesting would require a constitutional amendment because Congress creates a new budget annually, and cannot control any other future spending decisions. But, I would be in favor of an amendment like that.
  #85  
Old 08-23-2020, 02:29 PM
Stu from NYC Stu from NYC is offline
Sage
Join Date: Feb 2020
Posts: 12,438
Thanks: 1,161
Thanked 13,939 Times in 5,278 Posts
Default

Quote:
Originally Posted by retiredguy123 View Post
The requirement you are suggesting would require a constitutional amendment because Congress creates a new budget annually, and cannot control any other future spending decisions. But, I would be in favor of an amendment like that.
30 or so years ago Congress did pass some sort of a resolution about a balanced budget and for awhile followed it but after a few years ignored it.

Warren Buffet came up with an interesting idea how to balance the budget within a minute or two.

When times were good, if the congress ran a deficit of a certain size (do not remember the percentage) all sitting congressman would be ineligible to run for reelection.

That would be a wonderful amendment.
  #86  
Old 08-23-2020, 06:38 PM
Paper1 Paper1 is offline
Gold member
Join Date: Nov 2011
Posts: 1,099
Thanks: 23
Thanked 106 Times in 42 Posts
Default

Quote:
Originally Posted by Stu from NYC View Post
30 or so years ago Congress did pass some sort of a resolution about a balanced budget and for awhile followed it but after a few years ignored it.

Warren Buffet came up with an interesting idea how to balance the budget within a minute or two.

When times were good, if the congress ran a deficit of a certain size (do not remember the percentage) all sitting congressman would be ineligible to run for reelection.

That would be a wonderful amendment.
The problem with balancing the budget is people who are paying for government services don’t want to pay anymore and those receiving said services don’t want them reduced. In order to be elected to political office you need both groups therefore the budget deficit was invented.
  #87  
Old 08-23-2020, 06:54 PM
Stu from NYC Stu from NYC is offline
Sage
Join Date: Feb 2020
Posts: 12,438
Thanks: 1,161
Thanked 13,939 Times in 5,278 Posts
Default

Quote:
Originally Posted by Paper1 View Post
The problem with balancing the budget is people who are paying for government services don’t want to pay anymore and those receiving said services don’t want them reduced. In order to be elected to political office you need both groups therefore the budget deficit was invented.
If we had term limits perhaps we get people elected and they become leaders doing what is best for the country instead of what the think they need to do to get reelected.
Closed Thread

Tags
bottom, miss, market, investment, upswing

Thread Tools

You are viewing a new design of the TOTV site. Click here to revert to the old version.

All times are GMT -5. The time now is 11:53 PM.