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For years now, the wingnuts have been telling us how it was just the administrations' QE propping up the stock market - that the recovery of the stock market was just an illusion, that US companies were not doing well enough to justify the higher stock prices, and that once QE ended stocks would crash back to where they were 5 years ago because "the economy was not recovering".
Well, the Fed announced today that they were starting scale back QE in January - and, the stock market shot up - ending the day in record territory with the DOW up nearly 300 points, the S&P up nearly 30 points and the NASDAQ up nearly 50 points.
Oppps!
Gold, on the other hand got clobbered - as I said it would.
Hmmmm.... could it be that all the nonsense about the stock market simply being propped up by QE was just that - nonsense?
Yup.
Ken
Last edited by LordBalfor; 12-18-2013 at 07:26 PM..
For years now, the wingnuts have been telling how it was just the administrations' QE propping up the stock market - that the recovery of the stock market was just an illusion, that US companies were not doing well enough to justify the higher stock prices, and that once QE ended stocks would crash back to where they were 5 years ago because "the economy was not recovering".
Well, the Fed announced today that they were starting scale back QE in January - and, the stock market shot up - ending the day in record territory with the DOW up nearly 300 points, the S&P up nearly 30 points and the NASDAQ up nearly 50 points.
Oppps!
Gold, on the other hand got clobbered - as I said it would.
Hmmmm.... could it be that all the nonsense about the stock market simply being propped up by QE was just that - nonsense?
Yup.
Ken
Gold has lost $600 of its value since January 2012. Doesn't seem to be evidence that the economy is going to crash and burn like the goldbugs aka the Austrians predicted. Looking at the graph, we are seeing a long term decline of gold. It's not going to tank immediately, but I'm sure it'll lose at least another $300 of its value by the end of next year, and that's a conservative estimate; considering it lost double that between January 2012 and today
Gold has lost $600 of its value since January 2012. Doesn't seem to be evidence that the economy is going to crash and burn like the goldbugs aka the Austrians predicted.
Yeah, most goldbugs didn't invest in gold because of business or economic wisdom, they did so because of their political dogma. That's a REALLY dumb way to invest. I tried to warn such people that I'd seen all this play out before back in the late 70's - and that a lot of people got really hurt financially by doing that - the wingnuts just didn't want to listen.
Oh well.
Yeah, most goldbugs didn't invest in gold because of business or economic wisdom, they did so because of their political dogma. That's a REALLY dumb way to invest. I tried to warn such people that I'd seen all this play out before back in the late 70's - and that a lot of people got really hurt financially by doing that - the wingnuts just didn't want to listen.
Oh well.
Ken
Looks like Ron Paul led a lot of people off the cliff. He was really pushing gold, especially since he is heavily invested in it more than half of his portfolio is in gold and silver mining stocks
Actually what people like myself has said, was that the stock market is doing great because of limited competition due to big government, and record profits because there isnt any need to lower prices..
Looks like Ron Paul led a lot of people off the cliff. He was really pushing gold, especially since he is heavily invested in it more than half of his portfolio is in gold and silver mining stocks
meanwhile we have Democrats on the other side buying all sorts of stocks, and then taking out loans against them in the event the economy collapses. Yeah, no conflict of interest there either...
Looks like Ron Paul led a lot of people off the cliff. He was really pushing gold, especially since he is heavily invested in it more than half of his portfolio is in gold and silver mining stocks
meanwhile we have Democrats on the other side buying all sorts of stocks, and then taking out loans against them in the event the economy collapses. Yeah, no conflict of interest there either...
Assets purchases I think is what you mean because QE isn't just one action. Even then assets purchases have only been schedule to start slowing beginning in January. But at same time low interest rates remain .So QE is gone. Even then there are further risk such as when FED starts selling those asset purchases. Never heard anyone say FED QE was only thing supporting markets but definitely have seen risk of QE ending to soon or in all parts to eliminate QE. Especially interest rates which is FEDs primary tool.Bascially even then the markets are not the entire economy by any measure or the only measure to judge it .I think Berannke said their are five steps to wind down and we are only starting the beginning of first step. Interest rates could start at end of 2015 and assets sells there is no date eve guessed at. So basically it could be decade or more before FED support is gone from the measures all part of easing taken this time. Even then fiscal aspects of economic problem persist awaiting government actions.
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more than half of his portfolio is in gold and silver mining stocks
no conflict of interest here. No sir
