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More to the point - IF QE is "printing money" WHY has there been none of the high inflation you folks are constantly harping about? Not only that, but IF your theory is right, then why isn't the P/E ratio for the S&P 500 wayyyyyyyy out of whack? CLEARLY, something is wrong with your theory.
If the economy had any REAL strength, there would be inflation. The FACT that there is no inflation with this unprecedented liquidity should tell you something.
If the economy had any REAL strength, there would be inflation. The FACT that there is no inflation with this unprecedented liquidity should tell you something.
If the economy had REAL strength there would be no QE. That's the REASON for QE.
The economy IS recovering - and HAS been for several years now, but there's no doubt it's been a TOUGH recovery because we fell HARD and FAST back in 2008/2009 - hence the need for the exceptional measures the FED has been taking ever since.
The good news is things ARE improving and QE will likely be ending soon - maybe by the end of the year. At that point there probably WILL be some level of inflation, but the fact is, the FED has NEVER been in a better position to combat it, when and if it appears - because the standard technique for fighting inflation has been to raise interest rates, and right now interest rates are at historic lows so there is PLENTY of room for rates to rise (and thus cool the economy) without them becoming excessive - unlike back in the 80's when interest rates were already at higher rates even BEFORE the FED began raising rates to halt the inflation.
Is there risk?
OF COURSE there is, but the fact is, there was/is NO OPTION that doesn't carry some degree of risk. That's life.
Not if you move your gains to safer investments withing the plan.
The market will take a big hit today because Japan markets dove 1000 points (over 7%), after a 70% run up in a year. Perhaps it will put a smile on your face when you think about all those rich people taking a hit.
I personally don't care what others do with their money, if they hit it big in the market, stuff it in a mattress, roll it down a crap table in vegas whatever. Why do you? Ya hate those evil rich folks or something?
No it doesn't. That's just more ignorant nonsense by people who have NO CLUE how QE works - or in some cases just total BS by those who DO understand how it works but are simply misrepresenting it so they can "pimp gold" .
...Governments have indeed been engaging in quantitative easing. But can that be called printing money? True, the central bank's balance sheet expands, but on the private sector side, all that happens is that banks replace one asset with another – they sell bonds to the central bank and get reserves in their place. Are reserves money? This is a philosophical question akin to asking when life begins – at conception or at birth.
Bank reserves are in effect embryonic money that hasn't been born yet. The bank can give birth to new money based on those reserves, using the fractional reserve system to create money and lend it out. But until those loans have been made and the new money born, reserves are just potential money sitting in the central bank's womb...
...The title of a recent article I wrote for CNBC.com was How Gold Rallied for Years on a 'Misunderstanding,' but it's obvious from the comments I received that I did not clear up these misunderstandings.
So I'd like to explain in a bit more detail why quantitative easing (QE) is not printing money and why bank reserves aren't money..
You can lap up all that rubbish you want. QE aren't assets? Then why are banks sitting on 1.6 trillion in nothing and drawing interest. Why is the market roaring like it is? Never mind just read the propoganda and pretend your smarter than everybody else like you always do.
As mentioned, clearly you have no clue about 401K's. Most such plans have a variety of investment options, including relatively safe, low-risk options not dependent upon what the stock market does.
Ken
No sheet sherlock and most people never even look into moving their money around in 401K's to adjust for the market fluctuation so yes it is dependant on what the market does.
The rich get richer as usual.... the Left doesn't cry about it when their man is in office.
"... most people do not own stocks; they rely on home values and wages for their wealth and the recovery in those areas of the economy has been sluggish, at best. The Huffington Post story noted that at the end of 2012, the S&P/Case-Shiller home price index was roughly where it was at the beginning of 2009 (which was also roughly where it was in the fall of 2003).
As for wages, for most American they have gone nowhere but down. Inflation-adjusted, median U.S. household income, based on data from the United State Census Bureau, was $50,054 in 2011 versus $54,489 in 2007; a drop of about 8%. And things were not any better in 2012.
So, while record stock market highs might be a signal for the top 1% of household to break out the champagne and caviar, the lower 99% are still stuck on a diet of hotdogs and beans."
Wages are down... prices are up (but there is no inflation BTW).. whatever.
You can lap up all that rubbish you want. QE aren't assets? Then why are banks sitting on 1.6 trillion in nothing and drawing interest. Why is the market roaring like it is? Never mind just read the propoganda and pretend your smarter than everybody else like you always do.
Shall we compare track records?
Here's what you had to say about Obama's chances of re-election:
Quote:
Originally Posted by KUchief25
I agree. The dems can sit around here spinning all they want and attacking the tea party, Palin, Bachmann etc. But in the real world the guy in the big chair gets the blame when folks are sitting at home wondering how they're gonna feed their kids a month from now I don't care what letter is in front of their name. Sure the great orator will get the normal 30% straight ticket or kook votes but after that he's toast as would anybody in the big chair right now. I wouldn't be surprised if he doesn't even run if things don't pick up. With his policies in place they won't. He's done his damage which I think is what his handlers wanted to begin with anyway.
Lets see what the great orator has to offer up.........
"“In the meantime, cuz I know people are hurting right now and it feels like a tax out of their paychecks, what we’re doing is looking at every single possible area that can impact gas prices, from bottlenecks that are out there right now, we’ve set up a task force to look into speculation to make sure the folks aren’t taking advantage of the situation on the global oil markets.”
What did Lenin do to speculators in communist russia..........
" Rather than repeal its price controls, the Bolshevik regime scapegoated black marketeers and speculators, unleashing the Cheka upon them with orders to administer summary executions."
We are getting closer by the day folks...........
Uncontrolled inflationary printing press finance, ultimately leading to hyperinflation and nationwide reversion to barter
Near universal nationalization of manufacturing; widespread nationalization of retailing
Stringent price controls upon and forced requisitioning of agricultural products; state monopoly on grain purchases
Forced labor for civilians as well as the military
And WHATS happened to the market since you complained about THIS back in 2011? The market up by nearly 50%?
GASP!
How COULD Obama just standby and let that happen?
Quote:
Originally Posted by KUchief25
I'm sure some serious golf outings ahead this weekend. This is disgusting.
It was a gloomy day for the economy, with traders yesterday battling against plummeting markets which threatened to spark a double-dip recession.
So perhaps it would have been more appropriate for President Barack Obama to have been at his desk, working hard and eating some humble pie - rather than celebrating his 50th with a giant slice of birthday cake.
As the Dow Jones suffered its biggest drop since the start of the banking crisis, Mr Obama is said to have been getting down with a host of celebrities in the Rose Garden, mingling with Tom Hanks, Jay-Z and Chris Rock and doing the Electric Slide with Michelle as Stevie Wonder gave an impromptu performance.
After the President came under fire for hosting a lavish fundraising dinner on Wednesday night, yesterday's additional birthday celebration was billed as low key. But despite attempts to keep details under wraps, some of the stars in attendance couldn't help but divulge what they had seen.
Immediately after the event, comedian Chris Rock posted a message online.
'Just left the Presidents birthday party at the White House. Herbie Hancock played, Stevie Wonder sang and yes they did the electric slide. A great night,' he wrote.
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Read more: Appropriate, Mr Obama? As Dow freefalls, President hosts birthday party featuring Tom Hanks, Chris Rock, Jay-Z, a Stevie Wonder performance... and the First Couple doing the Electric Slide | Mail Online
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Excuse me if I don't put a whole of lot of credence on your posts. Maybe when you actually get something right for a change I'll think about it.
Ken
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