dow jones

100%

Well-Known Member
You have to ask why? Companies that routinely refinanced debt instead of paying it down. The tax structure is one where debt refinancing was rewarded with deductions, so their cash was better served to pay dividends or stock buy backs. This practice also inflates the price earnings multiples. When Uber went public they had a boat load of cash but no profits. People invested like crazy with hopes this would be their generation's Apple or Amazon. The Fed tried and flinched in 2018 to raise rates and force companies to be more responsible with their debt, but instead lowered rates to protect the market. Powell went into this cycle of rate increases with the tough message that they were not going to worry about the market and investors were going to feel the pain along with the companies that were poorly leveraged. Too much cheap money for too long has led us to this point.
QE 1 & QE 2 from 2009 never stopped. They created this bubble. Obama and then trump paying their millionaire and billionaire friends. They suck.
 

100%

Well-Known Member
It went up under Obama. Did you give him credit for that?

No it didn’t. Under Obama they started QE1. That was our tax money being given to the rich to pump the markets at a tune of about $40B/month. His entire presidency was a fake market. No growth and stayed stagnant bc they were printing money to prop it up. We suffered but the friends got paid. It continued under trump as well. Now the bubble is gonna burst. $30T gone, and we got left with the bill.
 

100%

Well-Known Member
Nah. He’s getting old and his die hard supporters are the punchline. It’ll be interesting to see how long his 2024 run lasts.
Which one are you talking about? If you haven’t been paying attention, saying anything about trump in the name of Biden looks silly. 😂
 
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Wally

BrownCafe Innovator & King of Puns
Going downtown? 26,000?

 
Going downtown? 26,000?

Who knows
Companies will still make good profits, they will just shed employees
 

Thebrownblob

Well-Known Member
:censored2: the little people. Stock prices and dividends must be protected at all costs.

Those yachts aren't going to buy themselves.
That is very true. Wall Street and the political class always takes care of their selves first. Remember too big to fail? It was like pulling teeth to get any help for working peoples pensions.
 
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