patrick.net

Call it Crazy says

Strategist says

If that's not a recovery, what is?

What's this??

*

It shows the recovery is not complete yet. That's all.
The GDP, Corporate profits, stock market, unemployment are the major indicators that count the most. The indicators you mentioned lag during a recovery.

The USA is in a jobless recovery.

2% GDP growth since Obama is anemic.

92 million people out of the workforce is pretty pathetic.

The chart civilian unemployment rate is bullshit but liberals like to use it.

The implication for investing in stocks is that interest rates will remain low and so stocks will continue to be attractive to capital worldwide.

I know a couple people on food stamps here who have iPhones, one also has HUD housing.

Oh Apple will split 7:1 plus dividends provide me with free shares, so I don't care if Uncle Obama keeps fucking up the economy.

clambo says

Oh Apple will split 7:1 plus dividends provide me with free shares

Party like it's 1999

Heraclitusstudent says

The US don't suffer from a lack of consumption. Consumption represents a large % of the economy. The US suffer from a lack of investment.

That is absolutely right. More a lack of capital formation. If you take away paper & illiquid wealth, it's not looking that "rich" anymore. Hence the desire to levitate housing and stocks and throwing the kitchen sink (print, baby, print!) at it.

But nevermind that Israel flew them in from Eithiopia, clothed, housed, and educated them.

A few Israeli rascists nullifies that Israel went out of it's way to embrace Eithiopian Jews.

There is no mountain of cash, some debt was reduced such as mortgages, but that has been taken on by the government, companies still have high debt leverage, despite of record profits, there is no safety in this. Point is, if you subtract the outstanding debt there is NO mountain of cash. That doesn't mean the stock market cannot be in a bull cycle if P/E is the driver, but it's about to end. I assumed sideways action at best for 2014 and so far that has held up. I'd be careful here.

*sigh*

The two crashes which you mention in your original post certainly followed their breakouts by four years, but I don't think you can extrapolate that to today, since the underlying conditions are different. We're in the midst of the loosest monetary policy in the history of banking, and every major world bank is doing it, not just the Fed. It's safe to say we will have a crash, but you can't just extrapolate timelines from two very different crashes of the past, though I'll grant you that the 1929 and 1987 crashes were also fallout from monetary stimulus.

We could just as well have no nominal crash, but a crash in real terms. Zimbabwe's stock market did great as its people were foraging for food. We've reached the point where market valuation and GDP are completely divorced from capital.

The future behavior of the stock market is not related to charts of the past.

Will some asset bubble form in the future? Probably yes.

If you went to the American museum of finance you would see the history of financial bubbles popping and crashing. It was easy to see in there if you didn't notice you weren't obvervant.

Stocks were a bubble in 1929 because you could buy them with margin=credit. Banks could buy them on margin with depositors money. Today the margin requirements are different, and depositors money is insured.

Assets that can be bought with credit, e.g. houses in California, can become bubbles. Some saw this and others didn't. The liar loans to strawberry pickers to buy $750K houses are what can lead to an asset bubble.

The stock market as a whole is not a bubble, capital is choosing to buy stocks rather than lend it to make a lousy 2% return.

Worldwide savings is capital seeking either income, capital appreciation or a combination of both. A rich evil robber baron in the Phillipines is still buying U.S. stocks.

My little old lady friend is richer than God from owning stocks which over this period have fluctuated down from time to time. So has Warren Buffet.

When you own stocks you own a piece of the action, sometimes you get dividends depending on the stocks.

When your dividends start adding up it really doesn't matter if you see your net worth go down a bit unless you are very strapped for cash, but since you have collected dividends you aren't.

My belief is that U.S will not become a 3rd world country. While elites have taken away quite a bit from the middle class, there's a certain level that they will not dare to cross since United States represents the capitalist power and in order for the representation to maintain the legitimacy in the eyes of americans and the rest of the world, we must maintain one of the highest standards of living in the world.

Besides, "they" have already taken enough and can't take much else. Many "jobs" now how horrendous benefits, paltry if any retirement/medical, so called flexible hours that require that people can't live on their own anymore. Ain't much more that they can do besides wrecking tech and considering the direction in which the world is trending with apps and other electronic conveniences, I can't see them doing that. So rest assured, we will not have a 1920's depression. We shall all drink a shot of vodka to that....

Since the early 1950s, The Jewish Agency has assisted more than 40,000 Ethiopians with their immigration to Israel.

The decision to appoint emissaries to Ethiopia came from The Jewish Agency management following requests from Jewish community leaders in Ethiopia. In 1953, The Jewish Agency appointed Rabbi Shmuel Be'eri as The Agency's first emissary to Ethiopia.

At the same time, the World Zionist Organization and The Jewish Agency appointed Yona Bogale as responsible for educational activity in the Diaspora. Rabbi Be'eri established the first Hebrew School for Ethiopian Jews in Asmara.

Between 1955 and 1965, approximately 27 Jewish Ethiopian teens, known as the "Kfar Batya Group," were brought to Israel where they were trained to be emissaries by The Jewish Agency, and returned to their communities as qualified and highly skilled teachers. Meanwhile, The Agency established medical clinics within these communities to serve the Jewish population, many of whom were awaiting approval for Aliyah.

1977-1987

By the end of the 1970s, Jewish immigration from Ethiopia took the form of Aliyah of Rescue. Until 1977, Jews from Ethiopia were permitted to immigrate to the Jewish State until 1977 when the dictator, Mengistu Haile Mariam, came to power.

During the decade that followed, immigration was clandestine and managed by the Government of Israel along with The Jewish Agency. Suffering persecution at the hands of Mengisto's Marxist regime for holding Jewish educational and Zionist activities, many of the Jewish villagers became refugees. The first refugees from the Tigray area walked all the way to Israel by foot with next to no aid.

Understanding the intense need, the Mossad Institute for Intelligence and Special Operations, along with the Israel Defense Forces (IDF) joined with the The Jewish Agency to establish more effective procedures and improved conditions for Aliyah. The IDF and Mossad began to bring Ethiopian Jews to safety in Israel, and The Jewish Agency welcomed and absorbed the refugees, housing them in youth villages and special sites established for this purpose.

1984-1985

"Operation Moses" aided the arrival of 6,364 Jews from refugee camps in Sudan to Israel, via intermediating countries, by foot, planes, and boats.

1988-1991

Between November 1988 and May 1991, 150,000 Ethiopian Jews moved closer to Addis Ababa, the center for Aliyah activities in Ethiopia.

"Operation Solomon" was an aerial Aliyah maneuver for the rescue of Ethiopian Jewry. In May 1991, 14,000 Ethiopian Jews arrived in Israel aboard IDF, El-Al, and Ethiopian Airlines aircrafts. During the operation, the IDF, The Jewish Agency, the Joint Distribution Committee, and the Mossad joined forces. With aid of American arbitration, the Israeli government reached a settlement with Mengistu and with the rebels, allowing the rescue to take place within 34 hours.

1992-1997

From 1992-1997, the Israeli Government along with The Jewish Agency assisted Ethiopian Jews of the Qwara Province to reach the Jewish State. Since June 2008, The Jewish Agency, at the request of the Government of Israel, has continued to make Aliyah from Ethiopia possible, according to the Law of Return 1970 Amendment of "Zera Israel" from Ethiopia.

2010-2013

By government decision, immigration of "Zera Israel" continues with "Operation Dove's Wings" which commenced on October 29, 2012. This is the peak of the Aliyah process for those eligible for immigration by the Law of Return 1970 Amendment. It is the final wave of Aliyah from Ethiopia and the Horn of Africa; an operation that began in the 1950s and has come full circle thanks to the services of The Jewish Agency.