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Analysts ALWAYS have "reason" - that doesn't make their "reason" right.
Such folks are likely simply looking for an excuse on WHY their prediction that QE ending would crash the market didn't pan out. The market won't crash when QE is pared further or even when it ends entirely. Might it go down a little? Sure, the market goes up and down ALL the time - for all kinds of reasons, but even if it does, it will bounce back up because the idea that the market has been simply supported by QE - rather than by a fundimental recovery of the economy - was wrong from the get-go.
Ken
The point is that no matter how many TRILLIONS are spent to protect The Federal Reserve's "too big to fail" banks and financial institutions, people will never have the faith they once had in these corrupt institutions. It is a futile effort by The Federal Reserve to keep power in place in all aspects of the economy and they have been succeeding by fooling the majority of people like you that keeping power in place is "saving the economy".
Except PEOPLE are the economy and consumer spending makes up about 70% of the total economy. A stimulus that would directly benefit PEOPLE instead of INSTITUTIONS would've been a true organic stimulus that would allow us to move forward and build a stable honest economy.
The "too big to fail" banks are now more powerful than ever and control more aspects of our economy than before 2008-when it had already reached a critical level which nearly crashed the world economy.
You seem to be all about saving corrupt institutions and keeping power in place while people that are truly aware of our system see through the illusion.
The point is that no matter how many Trillions are spent to protect The Federal Reserve's "too big to fail" banks and financial institutions, people will not ever have the faith they once had in these corrupt institutions. It is a futile effort by The Federal Reserve to keep power in place in all aspects of the economy and they have been succeeding by fooling the majority of people like you that keeping power in place is "saving the economy".
The "too big to fail" banks are now more powerful than ever and control more aspects of our economy than before 2008-when it had already reached a critical level which nearly crashed the world economy.
You seem to be all about saving corrupt institutions and keeping power in place while people that are truly aware of our system see through the illusion.
You are aware aren't you that ALL economies are based on "illusion"?
Nothing has any REAL value - not the US dollar, not stocks, not bonds, not gold, not wampum.
Economies are are ALWAYS based on faith - ALWAYS
Ah, more insults. Thank you. You are so smart. Your mother must be very proud of you.
You get what you give. Yep, she is very proud of the success that our whole family has achieved. And thank you for noticing how smart I am. It feels nice to have an effect on the less fortunate especially at Christmas.
You are aware aren't you that ALL economies are based on "illusion"?
Nothing has any REAL value - not the US dollar, not stocks, not bonds, not gold, not wampum.
Economies are are ALWAYS based on faith - ALWAYS
Ken
Exactly! But that's why I say in the end, it's a futile effort by The Federal Reserve. Most will eventually see what they have been up to since 2008 and there is already very little trust in Wall Street. They are risking the long term faith in the system for short term profit and monopolization.
Exactly! But that's why I say in the end, it's a futile effort by The Federal Reserve. Most will eventually see what they have been up to since 2008 and there is already very little trust in Wall Street. They are risking the long term faith in the system for short term profit and monopolization.
I think that most people are of the opinion that the big banks are too big - and many economists are coming around to that opinion as well ("Too big to fail" is NOT a good thing), but as long as the economy remains fragile, breaking up those banks (or even failing to support them if necessary) is a terrible idea. Once the economy is back to being sound and healthy, then it can be addressed. Whether it WILL or not - remains to be seen.
A Record $2 Trillion In Deposits Over Loans - The Fed's Indirect Market Propping Pathway Exposed | Zero Hedge
quote:
What repo does is it allows banks to exchange their holdings of Security X (in this case trasury) in exchange for nearly par cash courtesy of some custodian bank - and when it comes to the US non tri-party repo market there are only two: State Street and Bank of New York. The biggest benefit of Repo financing is that the bank can still hold the original pledged security on its books for Fed "supervision" purposes, even as it obtains fungible cash equivalents via repo, cash which it can then use for whatever downstream purposes it desires such as purchasing stocks
.... whereas JPM's decided to express its prop risk using fixed income instruments, and certainly not to buy simple boring Treasurys as the Bloomberg article speculated earlier, nothing prevented JPM from simply bidding up other risky assets "as a hedge" such as stocks, or crude, or slamming silver, or doing anything else it was perfectly entitled to do using the repledging mechanics of the repo system.
...
And after all, why should the Fed dirty its hands when it can simply provide the banks with the cash resources to do what they need without it having to engage in what is certainly illegal based on any of its charters. Because while the Liberty 33 Plunge Protection Team may, on occasion, engage the Citadel trading desk to buy ES at times when nobody else will step up, it certainly will not have to do so all the time if it were to flood banks with $2 trillion (soon to be $3, then $4 trillion as QE4EVA drags on and on and on...) in perfectly fungible capital, which can be metamorphozed from innocuous Excess Reserves to perfectly tradeable cash using two or three simple shadow banking transformations.
In that regard, we have to thank Jamie Dimon and his firm for being the biggest beacon of light in 2012, because without the generous contribution of the JPM CIO desk, and its explanation of how the "deposit to loan gap" we would all still be in the dark,
This I like:
"Think of Shadow Banking as your own in house synthetic structured product, allowing virtually unlimited leverage."
I don't recall anyone saying that anything would collapse with tapering but with the stoppage of the whole QE program which again is all FAKE money. I don't think you are understanding that. My suggestion would be to look up terms like hyper-inflation along with printing money. Look at the episodes that have occurred throughout history from things like this. No one wants to see the stick market falsely propped up only to come crashing down again and creating an economic crisis again.
And which is it? You are raving about the stock market doing well now (more than likely for your blind support for the Idiot-In-Chief) but it is also creating a huge wealth gap across America. Will you and all the other Liberal fools out there be complaining about that issue next week?
Lost the argument? You aren't even in the argument as you don't show any recognition of understanding the guts of the debate.
You start by correctly calling QE FAKE money. Then fall flat with your hyperinflation thesis. Which is it?
Why did the markets not crash yesterday? And why has Gold languished during this QE?
Answer: FAKE money.
I'm still waiting for you to tell me who these folks were that suggested that QE only pumping $75B into the stock market a month, would cause it to collapse..
Only the misinformed think that QE has been pumping $75B/mo into the stock markets.
And there are plenty of uniformed here on this forum and elsewhere.
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