Amen on the news watching comments. I couldn't agree more. Bottom line is that it is still about ratings for them and when things are on their way down the toilet on fire, they fan the flames. When things are starting to heat up to the upside, they fan the flames again. Check out Bloomberg TV. A bit dryer and even boring compared to many others, but I think that is due to the fact that they mainly report the news and spin it far less.
On the overall situation, I do believe the consumer is still in dire straits and will remain there for some time. We won't be without our bright spots, but I don't see us returning to any of the insanity and overleveraging and overspending of basically the last decade or two.
Great post James. Gotta agree with you its a shame....If it is too good to be true it usually is....The big boys are holding this thing up. Even all the analysts are saying it.It is just a matter of when...Good luck to all.
Th ere will always be a lot of negatve things to say about the economy at the end of a recession. But weve had other presidents double the national debt (Reagan) and everything worked out ok. I think now is the time to be positive, we may be at the start of a new bull market. Youve got to get away from watching cable news networks too much, or just be able to view them as entertainment, not as actual news, they are super-biased and polarized. If you take them seriously on either side, you loose objectivity and it will cost you in money making/market decisions.
That $100 cheaper xbox might drive GME back to 25 very soon
Begin Rant. It has been my opinion for over a year now that there must be a day of reckoning for the banks that caused this entire situation. They contributed to predatory lending with zero oversight, and then basically were allowed to gamble all of our money on credit default swaps under the assumption that they were protecting their loans. They knew all along the situation they were creating, and the average citizen is too stupid to see what was happening, you could blame the people, but honestly, they are innocent bystanders in this situation because most of them were taken advantage of, regardless of how insane the situation looks in hindsight of giving out loans that were literally impossible for people to pay back. Until the banks are made to pay, and pay dearly for the situation that they have caused, we will not truly recover.
The employment numbers are out of control, and like someone just said, those don't even take into account people that have quit looking for jobs and people who are severely, and I mean severely underemployment. Case in point, my job (server) currently has multiple people applying for serving jobs that have masters degrees, because they can't find suitable employment anywhere else, and guess what, they aren't getting hired at my job either. We run the very real risk of a jobless recovery at this point, unless the stimulus starts producing productive jobs. Yes, having a job is great, but if it contributes nothing, all you are doing is transferring money around, GDP has to grow, we have to have a productive workforce, and the financial institutions have to get all the toxic assets off their books (bankruptcy) before we can truly recover. Don't believe everything the media is trying to sell you about housing data and consumer confidence. Those numbers are meaningless, subjective, and easy to manipulate. Believe the real numbers that matter, unemployment and GDP, everything else is meaningless in the long term.
The government and media can keep this rally going as long as they choose to, but eventually the facts will shine through, and if nothing is done to alleviate the current situation we will see lows in this market that will rival those of March 09. The stock market is the least of our worries though, worry about our country, our future, and our ability to compete with other countries in the world economy.
Plenty of people still have money, I have a job, I have enough money to do the things I want to, so do most of my friends. I consider myself very lucky in these times and I never take for granted the fact that I can actually provide for myself, and I owe most of this to my parents and business school teachers for teaching me financial responsibility. Growing up I have had plenty of chances to ruin myself financially, as has everyone else, could have bought a house earlier, could have gone into debt, could have taken bigger student loans and went to a more prestigious university, could have made minimum payments on my credit card, the list could go on and on forever....But....I didn't, and because of that I have positioned myself to survive in what will probably be the biggest economic disaster of my lifetime. Not everyone is so fortunate, and I expect a great financial awakening for everyone that decided to live paycheck to paycheck, not save for situations like this, and who decided to run up their debt with money that they never deserved to spend in the first place. I know it will be painful, but I hope that in the end it will turn us into a more intelligent, productive, and financially responsible nation. Rant Over
PS. I know this is the GME board, not the political rant board, I just thought that this thread sorta pertained to my feelings on the situation. So...........to keep this GME related.........I am really excited about Rock Band: The Beatles. :)
I have said this several times, still believe it, this market is being propped up on no news and manipulated data. I would expect a pretty big sell off on the horizon. As for GME, I think it still has a little ways to go down before people really start getting behind it, remember, it was trading in the 20's not very long ago (not that past performance has anything to do with the future of this stock)....I don't think that there has been a catalyst to get it up to this price level from $20 other than it being perceived as undervalued, if that perception holds it will probably trade in this range, if it doesn't it will go much lower, but I don't see any realistic catalyst to get it into the 25-26 range before next earnings. Of course the stock market is rigged, so anything can happen :)