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B4 The Bell Thursday July 22


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Crapper- Your unequivocal pronouncements from on high are not going to fly here.  Sorry. The long term rate of return on stock indexes, which are managed and regularly culled, before taxes, before management fees, is around 7.5%, including dividends. (See Shiller for the data.)

You are changing the subject here.

 

The discussion was about total equity returns, not just returns on listed equities.

 

If you have facts that would support your argument, fine, but pronouncements in the absence of factual support are not very helpful.

 

But of course.

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Good Morning Crew- Window opens at the Bell for 45 minute Helmets on, Buckle up, I've lowered my stop to 1100-don't let profits get away. I've got a motto for Major Hooples nightclub- " I'm going to the Crapper" and it's yours for free major! :lol:

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When somebody here bothers to spend an hour or more of their own valuable time to compose a thoughtful rant, and make it available for all to read at no cost, we would all benefit from complimenting their efforts, pointing out some of the positive elements of their opinion, and if need be, politely pointing out areas where we may differ.

Thanks so much for the careful instructions on how to comport oneself. I'll be sure to give your advice the consideration it merits.

 

But speaking of valuable time I certainly don?t have enough to get dragged into a free-for-all about this today.

 

If anybody wants to try to argue put it on LOB please.

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9:35am 07/22/04

 

U.S. stocks in 'deep technical trouble': Windham Finan. ($SPX, $NDX) By Tomi Kilgore

NEW YORK (CBS.MW) - U.S. stocks are in "deep technical trouble," says Windham Financial chief investment strategist Paul Mendelsohn, given the recent inability by the major market indexes to hold support levels. Given the broad market losses on Wednesday and weakening internal readings, he feels "there is something that the big market players are seeing that has not yet entered the news flow." He said a break below the 1,076 to 1,087 level for the S&P 500 Index ($SPX) and a drop through 1,368 for the Nasdaq 100 Index ($NDX) could lead to a "rapid decline" in stocks. The S&P 500 was last down 3 points at 1,091 and the Nasdaq 100 shed 2 points to 1,385.

 

http://aolpf5.marketwatch.com/news/newsfin...6}&siteid=aolpf

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Guest yobob1
IMO we are beginning the final descent into hell, with the POR a matter of months away at best.

Many folks imagine the inevitable "descent into hell" as a long march sort of thing ... the foreign creditors telling Snowman, "Solly, your rating was cut from AAA to AA, so we charge you 30 extra basis points now, ha ha."

 

No. It's not going to be like that.

 

The unsustainable U.S. consumption machine will be unplugged in the same way as Russia (1998) and Argentina (2000) --

 

A quick and devastating loss of confidence in the currency, a "cold turkey" cutoff of external credit, and a savage hike in the cost of everyday necessities.

 

When this happens is uncertain. But it will play out with shocking speed when it does. The markets shoot first and ask questions later. By the time the "rumors" are confirmed as fact, it will be all over but the crying.

Perhaps it might occur that way, but IMO it won't. We're not Argentina nor Russia. The amount of idle capacity (both plant and labor) coupled with falling demand will make price rises unlikely. When the US slows it's "suckage" of global output, prices will fall on a global basis and there will be enormous pressure to keep native currencies competitive. Prices are already starting to back off in some commodities and I'm guessing that will accelerate and spread as we speed off the cliff.

 

What happened to "beans in the teens"?

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lighten up. :P

 

President Bush is visiting an elementary school and drops in on the 4th grade class. The class is in the middle of a discussion related to words and their meanings. The teacher asks the President if he would like to lead the class in the discussion of the word "tragedy." So Bush asks the class for an example of a "tragedy." One little boy stands up and offers, "If my best friend, who lives next door, is playing in the street and a car comes along and runs him over, that would be a tragedy." "Oh no," says Bush, "that would be an ACCIDENT." A little girl raises her hand: "If a school bus carrying 50 children drove off a cliff, killing everyone involved, that would be a tragedy." "I'm afraid not," explains the President. "That's what we would call a GREAT LOSS." The room goes silent. No other children volunteer. President Bush searches the room. "Isn't there someone here who can give me an example of a tragedy?" Finally, way in the back of the

room, Lil' Johnny raises his hand. In a quiet voice he says, "If Air Force One,

carrying you & Mrs. Bush, was struck by a missile and blown to

smithereens, that would be a tragedy." "Fantastic," exclaims Bush, "that's right. And can you tell me WHY that would be a tragedy?" "Well," said Lil' Johnny,

"because it wouldn't be an accident, and it sure as hell wouldn't be a great loss."

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Temporary Open Market Operations for July 22, 2004

Last updated: July 22, 2004 08:49 AM

Number of operations today: 1

 

Delivery date: Thursday, July 22, 2004

Maturity date: Thursday, August 05, 2004

Type of operation: 14-day RP

Operation close time: 08:35 AM

Total Money Value of Operation (in $bil.) 8.000

http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE

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Plunger said in the previous thread:

 

As for entrepreneurs...Are you prepared to enter into a long term lease on a commercial space to open a new enterprise in this environment?? Are you prepared to secure that lease with your house as collateral?? If so, what business would that be?? What market is presently underserved ...?

 

I've been asking myself and others this question for many months.

 

So far, have not been able to come up with any answer or proposal.

 

Does anyone foresee opportunity in an entrepreneurial-level business which is not massively capital intensive?

Hoovervillas and Tar Paper Shacks! :lol:

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Guest yobob1
What happened to "beans in the teens"?

Postponed, but not cancelled.

 

When the dollar cracks, bean prices will soar.

Hmm, this smacks of a wager. Perhaps two. $US at year end for one and let's pick one commod. I like copper for it's overall indicator abilities.

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