What are the indicators now?
When will Bernanke stop the printing presses? Is that when investors will start pulling out of their stocks?
Where to start? The WACC model is predicting deflation and so do the negative real interest rates...
WACC is weighted average cost of capital and is equal to: Total Debt/Total Capital * Rd (1-tax rate) + Equity/Total Capital * Re
where Rd is the interest rate of the debt and Re is the expected return on equity that comes from the CAPM model ==> Re = Rf + Beta * (Rm-Rf) Where Rf is the risk free return and Rm is the market return. Rm-Rf is the market premium for taking the market risk.
With over 350,000 foreclosures about to hit the fast track in Florida alone and many other states forcing the TBTF banksters to clean up their messes now that all the big election cycles are over, there is a tidal wave about to hit the markets right when flipping and the NAR cheerleaders thought it was all over.
In the mean time, drag out the daily charts from Jun 07 to Sept 08. It is quite entertaining watching the Fed flail and fumble and the carnage it created...
I am no high finance wizard, or economist, but I see nothing but pain in our future. How does this house of cards stay up? QE is one thing, but with all the manipulation of unemployment #'s, CDS's, of gold/silver, do we really know what is going on here? I mean the charts are worthless right, who has any price to risk discovery any more? I've never seen seat of the pants management of our economy like this ever?
Hey, try this, maybe that will work, oh, ok, well then try this other thing...all the while the monkeys in DC have no idea what is going on, and focus on immigration instead of fixing the spending problems we have, and getting the govt out of the way...nah they just write 'books' as new legislation, and nobody understands them, talk about complete morons!
I just wonder how much longer until this whole thing blows up???