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.
Bernanke ducked out and these stories now do sound a bit like rats leaving a sinking ship. Like Greenspan feigning naivete and ducking. This is classic leave while the gettings good.
Exactly-a lot of backpeddling. These leeches dried up all they could.
My bro works on Wall St and things seem to be heating up there as well with firings and such. He says that it is widely known on Wall St that stocks are inflated by QE and any slight signifier that QE will decrease or end causes fear and panic.
One can search and find vast differences in opinions on QE or any other economic topic. nothing new here .As to the gap it was I place and growing long before QE was every in media as a word public knew. I've always thought that promoting wealth sharing meant those dependent on it adds to numbers at the bottom of wealth.That means wealth creation is shared by fewer at the top taking the risk.
They are actually propping up the markets by buying assets and other instruments from finanical institutions verses the normal bonds.. So what they are esstentially doing is paying them back for the losses they would/did have during the crisis. What has happened is the financial institutions keep getting these monthly injections of cash propping them up when they no longer need it.. It's like a heroin addict, once you start shooting up you can't stop because it feels good and you need it..
Sadly, a lot of folks really do believe that Obama is brillant and his policies actually have strengthened the market when, in fact, that is far from true.. More people have dropped out of the job market, records on disability and welfare.. If anything, I struggle to find a single policy his administration has implemented that had any value. While the media and others refuse to bring this forward because he is the first black or half black or whatever President I doubt history will be as kind.
The moment the Fed's stop pumping is the moment you will see all the earnings folks made disappear. This is exactly why they haven't stopped.. The herion is flowing and the dealer can't cut off the addicts.
Worse, when and if they ever get the addict off the heroin and the interest rates start to rise the amount of money we borrowed will have to be paid back at a higher interest rate.. I read once that if the interest rate was 6.5% we wouldn't be able to pay off our debt until 2045 or something.. That's IF we didn't print any more money.
Add to this Russia, China, Brazil and other countries are working toward taking the dollar down as the reserve currency and it makes for a bad situation. If you think the great recession was bad wait to see what happens if we would loose reserve currency status and can no longer print money like water flowing from a stream. For those doubters look at England and the Sterling that was once the reserve currency before WWII (19th century)..
Folks don't have a clue how we are standing on a razor thin edge..
The issue is we need to cut off the money pumping in at some point. Otherwise we will see an overinflated market and the negative effects from such a market.
Oh please. someone saying they're not informed enough on something, turns into a "veiled attempt to deflect" and you pile on and say its an acute observation? Thats amazing.
Interestingly enough my comment HAS resulted in lots of links and information about it. It was not a "veiled" attempt at anything.
Last edited by greywar; 11-14-2013 at 01:13 PM..
Reason: comment NOT ocmment
Oh please. someone saying they're not informed enough on something, turns into a "veiled attempt to deflect" and you pile on and say its an acute observation?
As the Fed unwinds there are bound to be periods of instability and corrections made within the markets. But this situation is nothing as precarious or potentially severe as in 2007 for several important reasons. Firstly, it will mainly be the richer stock investors that take the brunt of any correction.
Investors would have taken the brunt of it in 2008 also but they didn't. The government stepped in so they wouldn't. What makes you think they won't again?
Quote:
Sure the middle class has their 401-k, but the general wealth of the middle class is in and surrounded by housing, not stocks.
A good bit of the middle class has their retirement tied up in a 401-k. If they loose a bit it hurts them far worse.
Quote:
In 2007 the whole housing and middle class took a huge hit. This was a much broader, serious and much more affected class than the potentials today. Today we might see the richer become less rich. Or maybe even not as it is simply too soon to know. Secondly QE is not an all or nothing scheme. It can go up or down as the Fed sees fit. The unwinding can last a very long time. Easily years or more, and by than the more 'natural' course and recovery of the economy may be occurring, where QE is even less influential down the road.
With the poor and middle class paying more and more for everything and the rich having all this wealth created by the government socked away in things like oil and wheat driving those prices even higher.
Quote:
Russia, China and Brazil can do all they want, but they are a very long way off time wise to be in any position, if ever, to dominate over and beyond the USD. Roughly 2/3 of all international transactions take place involving the USD. And that relative amount has only risen since the 2008 crash. Meaning more demands for USD, not less after the most major of currency stress tests of our generation.
This is where they can start a war with us and never fire a shot.
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.
