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Spanish Economic Growth Seen Fastest Since 2008 - ABC News At least we don't have unemployment like Spain but good news their economy is growing!!! Their unemployment rate is over 25%. Ours would be too if we weren't printing a lot of money.
"Unemployment remains a problem, however. It was 25.7 percent in the final quarter of 2013, the National Statistics Institute said Thursday. While that was down from a 26 percent rate previously reported, it remains near record highs. The figure for the first quarter of 2014 is due Tuesday."
Spanish Economic Growth Seen Fastest Since 2008 - ABC News At least we don't have unemployment like Spain but good news their economy is growing!!! Their unemployment rate is over 25%. Ours would be too if we weren't printing a lot of money.
"Unemployment remains a problem, however. It was 25.7 percent in the final quarter of 2013, the National Statistics Institute said Thursday. While that was down from a 26 percent rate previously reported, it remains near record highs. The figure for the first quarter of 2014 is due Tuesday."
I'm actually on my way there I will let you know how bad it is
Yes you should.
QE is money/debt swaps within the banking system. Not a whole lotta newly printed money simply placed into circulation. QE helps to keep interest rates down, and then stocks high, but not very inflationary or even very effective.
Yes you should.
QE is money/debt swaps within the banking system. Not a whole lotta newly printed money simply placed into circulation. QE helps to keep interest rates down, and then stocks high, but not very inflationary or even very effective.
The Fed swaps money that didn't exist before for assets on other institutions books. that is how they increase the amount of money in circulation. Open market operation - Wikipedia, the free encyclopedia "To pay for these assets, bank reserves in the form of new base money (for example newly printed cash) are transferred to the seller's bank and the seller's account is credited."
QE III & IV are printing money.
you are in error. the money used to buy the assets didn't exist before the purchases.
The Fed swaps money that didn't exist before for assets on other institutions books. that is how they increase the amount of money in circulation. Open market operation - Wikipedia, the free encyclopedia "To pay for these assets, bank reserves in the form of new base money (for example newly printed cash) are transferred to the seller's bank and the seller's account is credited."
QE III & IV are printing money.
you are in error. the money used to buy the assets didn't exist before the purchases.
I agree it did not yet exist.
But money is not printed. Money is created de novo out of thin air by the Fed and then swapped for the same amount of debt in member bank accounts.
All of this takes place within the Fed/banking system. Net new money in system = 0.
Almost all the new money created by QE still sits in bank accounts. Little has actually crept out into the general circulation, thus the flaccid effect on the economy and inflation.
yes like cutting back QE, Or upping the prime lending rate.
This is old news. The market knew that the Fed was going to end QE for a long time before it actually started doing it, and we are now several months into QE being scaled back and it barely caused a blip in the market. Earnings are what's keeping the bull market in place now, not QE, and that's the way it should be.
Interest rates will remain low for the forseeable future because the largest debtor in the world, the US government, depends upon them remaining low. The US government is "too big to raise rates on".
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An event will come. It always does. Up markets don't last forever. And this one is being fueled by the Fed's printing of a large amount of money.
Yup, markets go up, and markets go down. Up markets don't last forever, and neither do down markets. That's how the markets work. What's your point?? Should we all stay inside on a beautiful sunny day because it's going to rain someday?
Almost all the new money created by QE still sits in bank accounts. Little has actually crept out into the general circulation, thus the flaccid effect on the economy and inflation.
All the newly printed money is doing is making the banks whole after the losses incurred when the housing bubble popped. The Fed is buying bad paper at full face value.
The second link says that 85% is sitting idol that means that 15% is helping the economy along. So you have to stack up against the losses and print more money. If I remember correctly the Fed has changed policy an is now paying interest on the idol money. Recapitalizing the banks is taking time. But there is an expectation of lower future income both individually and taken in aggregate. This expectation means that the banks are very reluctant to loan out more money.
If you want to create the expectation of higher house prices then you need higher wages. In this Macro economic environment the only way I see to do that is to radically increase the minimum wage.
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