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Old 06-13-2020, 09:14 PM
 
1,659 posts, read 384,594 times
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Quote:
Originally Posted by EDS_ View Post
Where did you get the bit about US QE money flowing in Australia etc.?
I live in Asia and buy and sell real estate here so I experienced the massive run up in asset prices from 2009 on first hand. Banks here were flush with QE dollars and pushing customers to borrow at very low interest rates.
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Old 06-13-2020, 09:39 PM
 
10,547 posts, read 4,580,802 times
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Quote:
Originally Posted by mathlete View Post
I live in Asia and buy and sell real estate here so I experienced the massive run up in asset prices from 2009 on first hand. Banks here were flush with QE dollars and pushing customers to borrow at very low interest rates.
Not QE dollars per se. QE dollars were moneys swapped with member banks debt. Unless your Asian bank is a Fed member?
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Old 06-13-2020, 10:01 PM
 
1,659 posts, read 384,594 times
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The irony was that a lot of investors here in Asia (Hong Kong, China, South Korea, Taiwan, Japan) flush with hot money from the U.S. and aware that house prices here were maxed out by asset inflation began plowing their money into U.S. real estate and stock markets. In effect using cheap U.S. dollars to buy U.S. assets.
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Old 06-13-2020, 10:45 PM
 
9,609 posts, read 10,231,140 times
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Quote:
Originally Posted by mathlete View Post
I live in Asia and buy and sell real estate here so I experienced the massive run up in asset prices from 2009 on first hand. Banks here were flush with QE dollars and pushing customers to borrow at very low interest rates.
Whatever you experienced was not caused by US QE dollars.
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Old 06-14-2020, 02:00 AM
 
1,659 posts, read 384,594 times
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Major cities in Asia and Australia as well as Europe are filled with empty, million dollar homes and apartments bought as investments with the flood of hot money from the U.S. starting in 2009. Buyers can’t afford these over-priced dwellings though and wouldn’t buy them even if they could because they instinctively know their prices are vastly overinflated so they sit empty. The question is how bad the economic implosions of these regions are going to be when investors finally accept the fact that they’re never going to sell these units for anything near what they bought them for, much less at a profit.

Quote:
In London, Vancouver and elsewhere — just as in Sydney and Melbourne — the night-time spectacle of dark spaces in newly built "luxury towers" has triggered outrage.

This has struck a chord with the public not only because of its connotations of obscene wealth inequality and waste, but also because of the contended link to foreign ownership.
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Old 06-14-2020, 05:55 AM
 
283 posts, read 77,186 times
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Quote:
Originally Posted by 1ondoner View Post
Going through my newsfeed this morning when I cam across this headline Federal Reserve holds power beyond what we can imagine in The Hill.

The author is professor of economics at NYU but this is beside the point. There is a widely held belief, even on this forum, that the Fed has unlimited powers (read $$$$) to stabilize the economy. Even worse, the Feds monetary powers are almost unchecked and hence the belief that Fed indeed has unlimited tools. Thus with each economic crisis, the Fed wades deeper into uncharted waters as we have seen in the past few months and there are no signs of the Feds pulling back. If anything, they are signalling their ability to dig deeper into their magic tool box.

With the lack of regulation of the Feds mandate, your guess is as good as mine as to how this is going to end especially if we see another bigger wave in the absence of a covid 19 therapy. If you ask me the Feds cure may be worse than the shutdown and if you combine both the effect might be a lethal combination.
Its an awesome and terrible toolbox to behold. I'm thunderstruck.



https://www.youtube.com/watch?v=v2AC41dglnM
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Old 06-14-2020, 06:26 AM
 
Location: Prepperland
14,602 posts, read 10,588,274 times
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As long as the public debt (and federal reserve notes) are underwritten by 330+ million human resources, via FICA, there's little chance of the uSA becoming Zimbabwe.
...
Of course, if a substantial number withdraw from FICA, and cease underwriting the CONgress' profligate behavior, the debt will no longer have enough collateral, and collapse the funny munny system.
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Old 06-14-2020, 06:35 AM
 
9,609 posts, read 10,231,140 times
Reputation: 8396
Quote:
Originally Posted by mathlete View Post
Major cities in Asia and Australia as well as Europe are filled with empty, million dollar homes and apartments bought as investments with the flood of hot money from the U.S. starting in 2009. Buyers can’t afford these over-priced dwellings though and wouldn’t buy them even if they could because they instinctively know their prices are vastly overinflated so they sit empty. The question is how bad the economic implosions of these regions are going to be when investors finally accept the fact that they’re never going to sell these units for anything near what they bought them for, much less at a profit.
To whatever degree that happened US QE money had nearly nothing to do with it. Around 90% of QE money never went anywhere except onto bank balance sheets.

Also your story says nothing about US QE money. Or any QE money for that matter.
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Old 06-14-2020, 06:50 AM
Status: "Mi amigo es mi fan." (set 3 days ago)
 
2,830 posts, read 799,272 times
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Quote:
Originally Posted by EDS_ View Post
It amazes me when people, not just you, think they see things The Fed. does not see or understand.
The Fed has had a terrible forecasting record over the years. And if they do see and understand everything then their results do not match up with their rhetoric.
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Old 06-14-2020, 07:04 AM
 
10,547 posts, read 4,580,802 times
Reputation: 2153
Quote:
Originally Posted by mathlete View Post
The irony was that a lot of investors here in Asia (Hong Kong, China, South Korea, Taiwan, Japan) flush with hot money from the U.S. and aware that house prices here were maxed out by asset inflation began plowing their money into U.S. real estate and stock markets. In effect using cheap U.S. dollars to buy U.S. assets.
QE was primarily policy to lower interest rates. So if you can buy with USD based loans, then you can benefit.
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