The people speak
And the marketplace listens...
From
Bloomberg:
Dow Climbs to Highest Since Lehman, 30-Year Bond Slides on Fed
The Dow Jones Industrial Average climbed to a two-year high while Treasury 30-year bonds slid and the dollar fell as the Federal Reserve planned to expand asset purchases by an additional $600 billion to shore up the economy.
The Dow rose 26.41 points, or 0.2 percent, to 11,215.13 at 4 p.m. in New York, the highest since the week Lehman Brothers Holdings Inc. filed for bankruptcy in September 2008. The Standard & Poor�s 500 Index gained 0.4 percent to a six-month high of 1,197.96. The 30-year Treasury yield surged 0.12 percentage point, the most in two months, to 4.05 percent. The Dollar Index, which tracks trading versus six major peers, lost 0.5 percent. Oil reached a six-month high of $84.69 a barrel.
Yeah, a mixed message to be sure. The economy is still in the crapper but people with money to move are encouraged and are starting to do business again. I know with the store we have been going Galt -- paying a good wage to our employees and providing cheap food to the community but not making a taxable 'profit' at this time. I will be doing the same thing with the Bakery once I get it running smoothly.
The lame-duck session will be a grind but January is not that far away and 2012 is over the horizon -- America can hold on until then.
I know I keep harping on it but the idea that social woes stem from the poor distribution of a fixed quantity of capital is big steaming balloon full of
jenkem. Capital is fungible -- it can be created (the Harry Potter books) and it can be destroyed (Zimbabwe, etc...)
Posted by DaveH at November 3, 2010 9:26 PM