Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Agreed. I find the topic of the Fed's motivation (as in whether for self-benefit) an interesting topic but just can't believe they are making decision for the elections.
Agreed. I find the topic of the Fed's motivation (as in whether for self-benefit) an interesting topic but just can't believe they are making decision for the elections.
As do I, which is why I brought it up. So Slackjaw, you strike me as a person that isn't exactly stupid....what is your theory? Do you believe Bernanke is acting in our best interest? Do you believe the market is uncontrollable and functions entirely on it's own unpredictable whims? Why or why not?
I've done more than my share of mocking conspiracy theorists on this forum and yes, plenty of their accusations are crazy-stupid, but I also am not so naiive to think our beloved leaders would be above trying to pull a good, crooked conspiracy or three. Plus, some crazy claims have actually turned out to be true in the past. In our world, anything is possible and seperating the bunk from truth is easier said than done.
im far from an authority but with deflation on our door steps the only medication it seems to me is to try to inflate our way out and try to walk that fine line without crossing into hyper inflation.
As do I, which is why I brought it up. So Slackjaw, you strike me as a person that isn't exactly stupid what is your theory? Do you believe Bernanke is acting in our best interest? Do you believe the market is uncontrollable and functions entirely on it's own unpredictable whims? Why or why not?
I think Bernanke believes he is acting in our best interest. He believes QE will create more economic activity by making corporate bonds more attractive, and raise the stock market so consumer sentiment causes more spending thus more production thus more jobs etc. and generate enough inflation to avoid deflation.
I honestly don't know if he is correct, but I can't imagine a reasonable angle where he is doing it to better his lot in life.
Last edited by vter; 11-07-2010 at 09:44 AM..
Reason: personal attack
I think Bernanke believes he is acting in our best interest. He believes QE will create more economic activity by making corporate bonds more attractive, and raise the stock market so consumer sentiment causes more spending thus more production thus more jobs etc. and generate enough inflation to avoid deflation.
I honestly don't know if he is correct, but I can't imagine a reasonable angle where he is doing it to better his lot in life.
LMAO, thanks slacker, I have not laughed so hard in weeks.
Hey explain to me this whole making corporate bonds more attractive theory.
Blowing bubbles in commodities prices somehow makes corporate bonds look good in comparison?
Explain to me how raising the cost of raw materials translates into more jobs and increased spending.
While you are at it, explain to me how $90+ oil is going to help the economy.
The only people being helped by Beryankme, is the banks who can take 110 billion a month in free money, and speculate in equity and commodities.
For the public, QE means higher prices, less purchasing, and less jobs.
The rich will get richer, and the public will get screwed. That is not a conspiracy; it is what is happening right before your eyes.
Lets see markets rising,corporate profits beating estimates like crazy, job less claims numbers down , inflation reasonable and retail sales rising 3 months in a row. also saw major companies with ads hiring on aol.
guess no good is happening from any of this.
Last edited by mathjak107; 11-08-2010 at 08:15 AM..
This is true, money being printed by the Fed is going into the market driving prices. The question is does this offset the affects inflation on the common person?
Quote:
corporate profits beating estimates like crazy,
This is true also, although profits are not rising from sales increases, they are coming from layoffs and cost reductions which are not sustainable in the long run.
Quote:
job less claims numbers down ,
The devil is in the details, lets look at a more comprehensive view of employment numbers.
The October employment situation was dramatically weaker than the headline 159k increase in the payroll employment measure. The broader household employment fell 330k. The only reason that the unemployment rate held steady is that 254k dropped out of the labor force. The civilian labor force participation rate fell to a new low of 64.5%, indicating that people do not believe that jobs are available, but this serves to hold the unemployment rate down. In addition, the employment-to-population ratio fell to 58.3%, the lowest level in nearly 30 years.
While not actually knowing what happened to the net job change in the non-surveyed small business sector, the Labor Department assumed that 61k jobs were created in that sector. This assumption is not supported by such important private surveys as those from the National Federation of Independent Business or by ADP. Just a month ago the Labor Department had to revise downward the job totals due to a serious overcount of their statistical artifact known as the Birth/Death Model.
Quote:
inflation reasonable
Really? Reasonable?
Agricultural Raw Materials: 24%
*Industrial Inputs Index: 25%
*Metals Price Index: 26%
*Coffee: 45%
*Barley: 32%
*Oranges: 35%
*Beef: 23%
*Pork: 68%
*Salmon: 30%
*Sugar: 24%
*Wool: 20%
*Cotton: 40%
*Palm Oil: 26%
*Hides: 25%
*Rubber: 62%
*Iron Ore: 103%
Many of these costs have not been seen yet at the local level, but will be being felt in the marketplace 6 to 12 months from now.
Quote:
and retail sales rising 3 months in a row. also saw major companies with ads hiring.
Again the devil is in the details... Total consumer credit rose 1.1% on a year over year basis in September. The improvement was led by auto loans and a sharp 7.9% year over year increase in non-revolving credit. Revolving credit, however, fell at a steep -12.1% clip. This was the first net gain in over 8 months. Overall, the report is a mix of good and bad. The deterioration in credit card debt is alarming, however, there is clearly a bit of demand coming back in the form of auto loans. It will be important to see if auto sales continue at the current clip. If not, the consumer’s broad demand for credit will remain dead in the water. The question that begs to be answered is if a rise in consumer credit without a corresponding rise in employment a good thing?
guess no good is happening from any of this.[/quote] Good for whom? For investors who can take advantage of increases in commodity and stock prices, it is good. For people who are on the lower levels of the economic scale, who are being negatively impacted by unemployment and rising prices it is bad. What benefits one person often is detrimental to another. I will personally make money from this bubble, as I did from the dot.com and housing bubbles, because I am in position to do so. For most of the people who are just trying to live paycheck to paycheck, it will mean more suffering and lower standards of living.
last year profits were mostly cost cutting .this year revenues were pretty good as well..
no question commodities are up but so far very little has translated into much inflation and price increases. most finished goods only have a small part of the price directly related to commodities .even in a loaf of bread wheat acounts for 10% of the price with labor and production costs counting heavy.
i cant say what the future will bring but from all the sky is falling talk from qe1 so far so good. i dont debte what if's off in the future.
You guys all present interesting theories. My question is this: How does the "average person" protect themselves from the manipulations of the world market? If we've learned our lessons from the past, responsible use of credit or living within one's means is the way to go. As we save/invest for the future however, the value of our nest eggs seem to be going the same way as the value of a dollar....down. So basically you can try to do the right thing and still get the short end of the stick in the end!
You guys all present interesting theories. My question is this: How does the "average person" protect themselves from the manipulations of the world market? If we've learned our lessons from the past, responsible use of credit or living within one's means is the way to go. As we save/invest for the future however, the value of our nest eggs seem to be going the same way as the value of a dollar....down. So basically you can try to do the right thing and still get the short end of the stick in the end!
You have to learn to play the game. That means you have to spend a lot of time online doing your homework and learning everything you can.
If cash is going down and commodities are going up you need to adjust your portfolio accordingly. If things change you must change accordingly. You must learn to judge when a market is overheating and get out with your profits before it implodes.
The days of easy money are over. In today’s economy you need to be well informed just to survive.
Look for every source of information you can find, not just the corporate owned media with a vested interest in promoting a specific agenda.
The game is getting serious and only the hustlers will survive. In order to do better than average, you have to do more than average.
It has always amazed me how much time people have to spend on what they like, and how little time they spend on what they really need.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
