I do not get it. What is wall street seeing that the rest of Americans are not? In one of the articles Laszlo assumes that the markets are still going to go up because of the large supply of equity that is sitting on the sidelines. I am seeing the exact opposite. Banks are not lending, Americans have lost millions and net worth's have vanished into thin air. Where is all this liquid cash that is waiting on the sidelines to jump into the markets? Donald trump also came out with an article this week that states banks are still not willing to lend and they have held onto the money that was given to them from the US tax payers. Banks usually create a lot of liquidity but they are currently holding back all funds. Like I said in the title it is a big mess out there, but for some reason the Equities continue to rise although volumes are extremely low.
Over the last semester we have studied a lot about supply and demand. I believe supply and demand work great but when it comes to the markets you have to watch out for the manipulation of supply and demand. Our Government is injecting millions into the markets, gold and oil continue to go up because the US dollar is so weak even after what we have went through these past two years the speculators just can't get enough. Based off what we have learned from Supply and Demand is there truly a demand for Gold? Is oil going up because of the limited supply or is it because OPEC wants to get more money? There are just so many factors to consider it today's markets and I would suggest that we stay close to the shore until real growth begins to take place.
http://www.cnbc.com/id/34223013
http://www.cnbc.com/id/34223013
1 comment:
Hey Skylar - the blog closed for the semester at midnight on the 30th.
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