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Thats not at all what he was doing.. Shorting on margins gives you an escrow account and a liability to pay if the stock doesnt collapse, he had no obligation to pay, nor did the money go into escrow..
Assets purchases I think is what you mean because QE isn't just one action. Even then assets purchases have only been schedule to start slowing beginning in January. But at same time low interest rates remain .So QE is gone. Even then there are further risk such as when FED starts selling those asset purchases. Never heard anyone say FED QE was only thing supporting markets but definitely have seen risk of QE ending to soon or in all parts to eliminate QE. Especially interest rates which is FEDs primary tool.Bascially even then the markets are not the entire economy by any measure or the only measure to judge it .I think Berannke said their are five steps to wind down and we are only starting the beginning of first step. Interest rates could start at end of 2015 and assets sells there is no date eve guessed at. So basically it could be decade or more before FED support is gone from the measures all part of easing taken this time. Even then fiscal aspects of economic problem persist awaiting government actions.
"Never heard any say FED QE was the only thing supporting markets"????
Really?
REALLY?
You CLEARLY have not been paying attention:
This is why it is so important for serious investors to listen to Rush Limbaugh, you learn what not to invest in by listening to the Lear Capital commercials .
No, so?
It won't crash with the complete ending of QE either.
No one with any brains expected an instant QE ending, but apparently stock market investors aren't particularly concerned about QE ending. There's a REASON for that - it's not been simply QE propelling the market, it's been general economic recovery. If it had been simply QE propping up the market, then even a REDUCTION of QE would supposedly pull a large portion of that "support" out from the market - which WOULD lower stock prices - IF it was TRUE that it was simply QE supporting the market.
CLEARLY now, that's NOT been the case.
The fact is - despite wingnut claims to the contrary - the economy HAS been recovering and CONTINUES to recover. The recovery has been slower than we'd like and it's more painful than we'd like, but it continues to recover nevertheless.
"...The Fed's action comes after encouraging reports that show the economy is accelerating.
Hiring has been robust for four straight months. Unemployment is at a five-year low of 7 percent. Factory output is up. Consumers are spending more at retailers. Auto sales haven't been better since the recession ended 4½ years ago...
...Fed officials still project economic growth of roughly 3 percent next year. But they are slightly more optimistic about unemployment, predicting it could fall as low as 6.3 percent in 2014, down from a low of 6.4 percent forecasted in September..."
No doubt that one day in the markets prove whatever point it is you want to make. Let's let it stop and then we will see. Some are saying that it is never going to end.
If you think about this, it's exactly the opposite of what is being claimed. The markets were told that the Fed will continue pumping 75 billion a month. The concerns were that they would end it. Why wouldn't the markets party on?
OP, I thank God for the lunes saying "Bad economy.just a QE affect this DJ". Without them, stock prices would be even higher. I want some undervalued to buy from.
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