[Jack]

I keep wondering if the price for oil on the futures market isn't predictive - i.e., traders expect oil supply and demand to remain in balance because of a recession (or worse).

The home mortgage fiasco is not secret, nor is the trade deficit, nor ever so many other things. How the stock market stays up, I simply do not know.

I think 2007-2008 will be interesting. Not in a good way.

[MonteQuest]

$this->bbcode_second_pass_quote('Jack', 'H')ow the stock market stays up, I simply do not know.

[peaker_2005]

$this->bbcode_second_pass_quote('MonteQuest', '')$this->bbcode_second_pass_quote('Jack', 'H')ow the stock market stays up, I simply do not know.

[max_power29]

$this->bbcode_second_pass_quote('Jack', 'H')ow the stock market stays up, I simply do not know.

[Chuckmak]

$this->bbcode_second_pass_quote('max_power29', 'N')YSE Chairman Richard Grasso Embracing A FARC Commander:

[max_power29]

I forgot to mention:

The third reason the stock market stays up:

3) is the constant cheerleading/propaganda from the mainstream media along with the fudged economic numbers the government puts out all the time that are always better than reality.

Even though the truth is not a secret like jack said, the sheople get all their info form the mainstream media, take it at face value and do not seek the truth.

Obviously we all ended up here at websites like this seeking the truth but we are in the (very very small) minority.

[pea-jay]

RE: THe stock market

I read out there another plausible (and very troubling) explanation: STOCK BUY-Backs and a reduction of IPOs. Simply put I read this theory on one of Bill Fleckenstein or maybe Jim Jubak's MSN columns late last year that the increase in stock buybacks and decrease in new IPOs are resulting in a limitation of stocks simply available for purchasing. A tighter supply (even of paper) will command higher prices simply because there are fewer shares for traders to be chasing.

This makes sense and is troubling too. WHy are companies buying back their shares? We know the energy firms are doing this. How about others? Why are so few new firms eager to enter the equity markets anymore? Are CEOs begining to fear the future business climate so much they are going to lengths to avoid the stockmarket and their shareholders?

[max_power29]

I actually heard the stock buy-back theory from the mainstream media-NPR just the other day while on my way to work.

Im sure this contributes to the rise in stock prices too. Buy backs are up to historical highs lately.

[Tanada]

$this->bbcode_second_pass_quote('Gideon', 'H')mmm. Interesting.

What is the main function of a company buying back its stock?