Stocks rise as dollar continues to weaken

The stock market managed modest gains as a weaker dollar lifted gold and oil prices and Federal Reserve officials signaled that borrowing rates will remain low.

[Bree]

Home sales are increasing. The economic recovery has started. This is a time to be happy. I'm feeling better already.

[Okay]

Great. If I travel abroad I'll have to bring some chickens, sand dollars and shiny stones to barter since our dollar is worth less than toilet paper.

[Incredible70]

Yaaayyyy! My stocks are worth more dollars, but my dollars are worth less. Great recovery, Ofraudma!

[Cole]

Bree wrote:

Home sales are increasing. The economic recovery has started. This is a time to be happy. I'm feeling better already.

Well, I know you didn't read the article....did you at least read the title of it? Stocks rise as DOLLAR CONTINUES TO WEAKEN. That isn't a good thing.

[Truth]

Problem is that's great for oversees investors, if you live in the United States this news should continue to scare you.

[COPDd]

yeah, a weak dollar is supposed to be good for exports.......maybe, but where are the jobs?

[GLOCK]

Can anyone say "INFLATION"????? Any fool knows you can't do what Obammy did and not cause inflation. No one wants to use the I word. How's all this "CHANGE" working for you fools who voted for the "Messiah"??????????

[Porkulus]

U.S. Considers Remaking Mortgage Giants, Fannie Mae & Freddy Mac

http://www.washingtonpost.com/wp-dyn/content/...



The Obama administration is considering an overhaul of Fannie Mae and Freddie Mac that would strip the mortgage finance giants of hundreds of billions of dollars in troubled loans and create a new structure to support the home-loan market, government officials said....

more at washingtonpost.com ...







Offloading the defaults to another government subsidized entity does not fix the problem. If you add up the administrative costs, reassessments, etc. It will cost the taxpayers more. What a joke.

Isn’t this just what TARP was supposed to be doing already ? Maybe they spent it all on car companies pork?

This won't "clean the books", it'll actually hide the books and slowly bleed money from the "new" organization into the old to cover up the losses the old Fannie/Freddie had. It's been done in Japan a few times since their collapse a few decades ago.

[P T Bull]

The federal reserve just expressed their support for a strong dollar but kept interest rates artificially low which will ensure a weak dollar. Obamanomics!

[Porkulus]

Now here’s the scary part: Even though more than half of all American households now own equities directly or through mutual funds, an increase in equity prices does not figure into the Fed’s calculation of inflation. So while measures of core inflation (which exclude food and energy) carefully register minute gains in the price of a fixed basket of goods and services meant to reflect what a typical family buys to achieve a minimum standard of living, they ignore massive price surges in what has effectively become a widely held consumer good: stocks.

The dollar is worth less now than it was a few months ago. Since the dollar is worth less, stocks cost more, hence the rise in the stock market based on dollar values.

My view is that things may be rapidly progressing to the "torches and pitchforks" stage...