Bernanke is sinking this market big time.
He has very loose lips--not good for the Senior banking official. My initial take is he's an idiot. I read a lot about how great he was, but I'm not seeing it.
I agree with Shelley. The Fed with its loose lips and stupid rate increases is putting the economy into a recession. UNP and everything else is going to get hurt bad. If it continues like it looks like it will through the summer and fall we will end up with Democrats controlling congress which will also be bad for the economy and stocks.
I am no economist, but isn't the Fed supposed to keep inflation in check? I guess housing doesn't count as inflation as our housing prices in CA increased by 20-25% from 2000 to 2005. Seems like the only inflation they care about is this "basket of goods" (used to determine entitlement COLA) that accounts for less then 25% of my monthly discretionary spending. What about the 50% called housing cost that obviously was overheated by the low interest rates supported by Greenspan.
Just a comment as to something that seems like nobody wants to admit. The low interest rates of the FED, and the low capital gains, and the elimination of the over 55 years old rule on gains on housing had a big impact on housing prices and now we have people that would like to own homes are not able to afford them. I used to spend 4X my salary for a home purchase prices, now it seems 7x to 8x is the norm for us in CA. Something is messed up about this. Anyhow, glad to be an owner, but realize this is messed up for others that would like to like in a home of their own.
Dems controlling congress will be bad for stocks and the economy you stated; lets look at the facts, when Clinton was in office the Dow was higher than when Bush and your repugs took office, inflation was low, gas was cheaper and now Reaganonics of trickle down with astronomical deficits and cheap taxes for the very wealthy are the norm.
Inflation was in check and the Asias weren't owning America.
Nah, I disagree.
But go ahead and donate all your wages to the FFEG cause at UP if you think another Bush will help UP stock rise.
Its not political, just a fundamental fact that UP should not have a PE above 20.
Asta la Vista baby!! To all who bought when Jimmy Cramer pumped this stock at 95 I apologize.
People, this is a railroad stock, not a methane or oil or ethonal stock. UP is congested and cant handle any more. Its growth is limited to how fast they can raise their prices.... and not grow their business.
100 and a stock split.... a little irrational man. But hey, whatever, im covering my short.