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Now, if only 51% of Americans withdrew from FICA - ah - that would be glorious. The Lords of Capitol Hill would be left naked without their sheeple to shear.
Looks like black tuesday looming boldly. Yeah I read where Italy is in trouble. May as well let the entire house built on cards crash down and try and pick up the pieces.
Good thing I have a large supply of ramen noodles!!!!
It's has a hell of lot more to do with what else is going on in the world:
China is trying to slow its economy. People in internetional markets don't know if all the interest rate hikes, increased capital requriements for banks, and tougher loan standards are going to lead to a "soft decline" in terms of slowing down the economy or a "hard landing" crash. If China goes down hard it takes Canada, Australia, Brazil, the United States and other countries down with it. They've already announced a 12% decline in imports in their most recent balance of trade figures.
Portugal, Spain and Italy are still huge question markets in terms of if they will need bailouts. The Greek bailout dilemna has spooked the bond markets and yields are up on Italian, Spanish and Portugese bonds, which actually makes the problem worse.
We still have uncertainty in the Middle East with Libya, Syria and Yemen.
This bullsh*t in Congress with the debt ceiling is is creating uncertainty and finanical markets hate uncertaintly.
If you've been in the market since last summer and made the right calls you've had a hell of year. It's not the worst time in the world to pull some money off the table and see which way these sh*t storms are going to blow before deciding what the next play is.
Read the Finanicial Times, Wall Street Journal, Forbes, Business Week, Bloomberg etc. etc. etc. Nobody is really sweating the ending of QE2 real hard.
It's has a hell of lot more to do with what else is going on in the world:
China is trying to slow its economy. People in internetional markets don't know if all the interest rate hikes, increased capital requriements for banks, and tougher loan standards are going to lead to a "soft decline" in terms of slowing down the economy or a "hard landing" crash. If China goes down hard it takes Canada, Australia, Brazil, the United States and other countries down with it. They've already announced a 12% decline in imports in their most recent balance of trade figures.
Portugal, Spain and Italy are still huge question markets in terms of if they will need bailouts. The Greek bailout dilemna has spooked the bond markets and yields are up on Italian, Spanish and Portugese bonds, which actually makes the problem worse.
We still have uncertainty in the Middle East with Libya, Syria and Yemen.
This bullsh*t in Congress with the debt ceiling is is creating uncertainty and finanical markets hate uncertaintly.
Read the Finanicial Times, Wall Street Journal, Forbes, Business Week, Bloomberg etc. etc. etc. Nobody is really sweating the ending of QE2 real hard.
QE1 and QE2 were done to provide liquidity to largest banks in country and a time when the country and in fact the word was dire need of access to credit to prevent a possible global financial meltdown. The objective of the FED was that banks would use the money to make loans to help the economy. The banks have been makiing loans alright to corporations that have used the money to build factories, research and development centers, distribution centers and retail outlets in low wage high growth emerging market nations. They have record breaking profits to show for their efforts. In the meantime they have pretty much turned their backs on the American people.
Everybody with any damn brains or knowledge of the financial markets KNEW QE2 was coming to end.
To put off the inevitable so that the US did not have rioting in the streets as we see in some parts of Europe. The FED was hoping to hold of civil unrest until after the 2012 election as a means to keep Obama in office. However, world events appear to be out of the control of the IMF right now and only time will tell if cooler heads prevail or if hysteria takes over.
QE1 & QE2 did add some liquidity but not only to US banks, the FED bailed out foreign banks who had purchased US toxic assets as well. By monitizing our debt and decreasing the value of the dollar the world currency markets were also manipulated in the favor of the US government.
Realistically there won't be a run on the banks because they simply keep very little cash on hand in the vaults the way they did in 1929. To a large degree that wealth that is not held physically is a digital illusion just as were the derivaties and the toxic assets that remain on the balance sheets with a due bill yet to be served upon the American taxpayer.
To put off the inevitable so that the US did not have rioting in the streets as we see in some parts of Europe. The FED was hoping to hold of civil unrest until after the 2012 election as a means to keep Obama in office. However, world events appear to be out of the control of the IMF right now and only time will tell if cooler heads prevail or if hysteria takes over.
QE1 & QE2 did add some liquidity but not only to US banks, the FED bailed out foreign banks who had purchased US toxic assets as well. By monitizing our debt and decreasing the value of the dollar the world currency markets were also manipulated in the favor of the US government.
Realistically there won't be a run on the banks because they simply keep very little cash on hand in the vaults the way they did in 1929. To a large degree that wealth that is not held physically is a digital illusion just as were the derivaties and the toxic assets that remain on the balance sheets with a due bill yet to be served upon the American taxpayer.
Actually the money going to foreign banks were branches of the same US banks that received the origional TARP. Many anyway. Double dipping so to say. That has come to an end or so they say. Now all that money they "forced" the banks to take is being "forced" by the DOJ to be loand out to minorities with bad credit who can't pay it back which is what started this mess in the first place. Insanity anyone. That is the US financial system. I think it is being done intentionally now as nobody can be that stupid twice back to back.
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