(08-24-2015 03:30 PM)georgia_tech_swagger Wrote:  

(08-24-2015 03:21 PM)stinkfist Wrote:  

He is, to me, the great mystery of modern American monetary policy. He authored several papers on The Gold Standard in support of it before he was appointed. Then when appointed he become the great printing press. I want to know either what changed his mind or what compelled him through incentive or otherwise to do what he didn't believe in.

he's a jew man....like many have told me I should have been jewish (whatever the fk that means), louis ck says it better when he stated, "it's the only slur that is acceptable as a reference to describe a culture"

every time I listened to his rhetoric, I cringed and 'prayed'....now I just prey

maybe this was slurping in his elephantiasis...... and he liked it a lot.....

And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

you left out 'lo'

(08-24-2015 03:08 PM)georgia_tech_swagger Wrote:  I don't agree, btw, with assessments that the Dow will collapse. Some observations:

- What matters isn't what number the Dow is, but what it represents in purchasing power. Price the Dow in gold for a better idea of what I'm on about here. The Dow has been losing purchasing power for about a decade now. It has been eaten away by a weak dollar and high inflation.

- Due to the Fed pumping trillions of dollars into the system and essentially eliminating interest rates, money has flooded into stocks. And for good reason. When your savings account is making 0.25% ... why bother? Even long term CDs are well below 1.5%. Hell you'd be better off top level state bonds at that point. Bonds having a 4x better return than savings accounts is a giant red flag waving in front of your face of how manipulated the Fed has made this economy.

- This little charade is being kept going by the Fed's liquidity pump and a lack of competing currency on the global markets. The wealthy can always (and do) go into commodities to escape bad currencies. That's not so easy an option for the average joe putting his 401k somewhere.

- The Fed has no exit strategy. If they keep the liquidity pump going, they're destroying the purchasing power of those on fixed income, the poor, and the lower middle class. That money is then being shifted to big banks who get the money for basically free and loan it out at 5% or higher. It risks a dollar collapse if another viable global currency can be created or chosen. If the Fed tries to raise rates to shut off the liquidity pump and defend against inflation, the game of musical chairs abruptly halts, and the giant bubble we've pumped up in the financial sector pops. Stocks will tank HEAVILY, interest rates will soar, and the tepid housing market which has struggled even at < 5% on a 30 year fixed will grind to a halt as interest rates soar against the background of stagnant wages and lowered purchasing power. Credit will dry up, and our economy, tied to Santa's jolly fat *** and conspicuous consumption, will tank. The second of those options is politically not viable. The Fed therefore will keep the pumps running and gamble the dollar itself to keep the fake prosperity going and cheat the US creditors out of being paid what they should by paying back in lesser money.

Financial repression

(08-24-2015 10:45 AM)HeartOfDixie Wrote:  "Correction territory"

But, the best financial advice in the world, "easy come, easy go."

It will be recover by March. Until then hang on and suck it up buttercups

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

Yea, you could see this coming. Had they come out today and said "we will raise rates in September and QE is completed for the foreseeable future" we could see a freefall to 12,000 or worse really quick.

(08-24-2015 06:57 PM)UofMstateU Wrote:  

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

Yea, you could see this coming. Had they come out today and said "we will raise rates in September and QE is completed for the foreseeable future" we could see a freefall to 12,000 or worse really quick.

Great, so there will be more sales in the short future. Great buying opportunities will present themselves for shrewd investors. Value is value, but undervalued value is value plus. Would be nice if the timing helps scuttle the Dems chances in 2016--a much needed added bonus. The Dems own this economy, after all.

(08-24-2015 07:08 PM)GoodOwl Wrote:  

(08-24-2015 06:57 PM)UofMstateU Wrote:  

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

Yea, you could see this coming. Had they come out today and said "we will raise rates in September and QE is completed for the foreseeable future" we could see a freefall to 12,000 or worse really quick.

Great, so there will be more sales in the short future. Great buying opportunities will present themselves for shrewd investors. Value is value, but undervalued value is value plus. Would be nice if the timing helps scuttle the Dems chances in 2016--a much needed added bonus. The Dems own this economy, after all.

I hate the move by the feds. If anything, I would rather them say that they will raise rates if the stock market reaches a certain point. This will keep the stock bubble in check. I know they are scared to death that if they sneeze they whole thing will go to hell, but they also have to prevent the bubble from getting bigger.

(08-24-2015 06:57 PM)UofMstateU Wrote:  

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

Yea, you could see this coming. Had they come out today and said "we will raise rates in September and QE is completed for the foreseeable future" we could see a freefall to 12,000 or worse really quick.

Anybody care to explain that article in layman's terms?

(08-24-2015 08:42 PM)blunderbuss Wrote:  

(08-24-2015 06:57 PM)UofMstateU Wrote:  

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

Yea, you could see this coming. Had they come out today and said "we will raise rates in September and QE is completed for the foreseeable future" we could see a freefall to 12,000 or worse really quick.

Anybody care to explain that article in layman's terms?

I can try.

Quantitative Easing (QE) is basically when the Feds print money, then use it to buy bonds from private banks. It puts more money in the economy, theoretically so that the banks have more money to lend out. A specific QE is when the Feds commit to purchasing an additional amount of bank bonds. These bonds are for 3-10 years, so some of them are always maturing. Therefore, to maintain a certain level, the Feds will constantly purchase additional bonds every month. (Right now around $60billion per month)

QE is more of a last ditch effort. Typically the Feds reduce the interest rates in order to grow the economy. By reducing rates, more people can afford to borrow money, and its cheaper to borrow so more people and companies do it, thereby spurring on the economy. The problem is that you cant lower interest rates below 0%, which is basically where the interest rates for banks have been for 7 years. So if the Fed cant lower interest rates, it switches over to QE, which means they print money and lend it to the banks for a bond at zero percent interest.

The problem with printing money and putting more money into the economy is that it will eventually lead to inflation. When more and more people can borrow money, they buy more stuff, and the price of stuff goes up.

When the Feds print money and lend it to banks at zero percent, investors dont buy bonds because the interest they get paid is really low. ( How's your interest on your savings account looked the past 7 years?) Therefore investors pour money into stocks. Even if a stock only returns a small gain, its MUCH larger than the gains on items like bonds. So money gets heavily invested in stocks, which drives the price up on stocks.

This creates a bubble, as stocks are not valued at their price due to profits, but are driven higher because everyone is buying them because the rate of returns for bonds suck.

The problem comes in when yo start to get inflation. If inflation starts to creep up, the Feds have to act by stopping the QE process. Then they have to look at raising rates.

Which leads us to the stock market carnage. The stock market is in an inflated bubble right now because the interest rate is zero. When the Fed stops printing money, and starts raising interest rates, then the stock market will correct itself to more of a true value of stocks, which is siginificantly less than where the market stands right now.

The feds have slowed the printing of money, and have said that rates will likely increase in 2015. (That leaves Spetember or December for them to do so.) But after the market has gotten real jittery the past few days, it doesnt look like they are going to raise rates in September, and now there's talk of another QE.

And thats the problem. The Fed is having trouble putting the corrected monetary policies in place to prevent the bubble from bursting, because whenever they hint that they might, the markets start to seriously wobble. But its a problem of their own making. They dont want the big bubble to burst out of control, yet they allowed the bubble to get this big to begin with.

Hold on to your shorts.

China and Japan sliding again.

Shemitah applies to every country and person. Blessing flow to those who honor and worship the Hebrew Jehovah and Yeshuah. Curses flow to those that dont. Attack away.

https://m.youtube.com/watch?v=tiftfttRTSE

(08-24-2015 08:42 PM)blunderbuss Wrote:  

(08-24-2015 06:57 PM)UofMstateU Wrote:  

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

Yea, you could see this coming. Had they come out today and said "we will raise rates in September and QE is completed for the foreseeable future" we could see a freefall to 12,000 or worse really quick.

Anybody care to explain that article in layman's terms?

There were several QE threads here in the past in which liberals ardently defended the policy.

(08-24-2015 09:19 PM)UofMstateU Wrote:  

(08-24-2015 08:42 PM)blunderbuss Wrote:  

(08-24-2015 06:57 PM)UofMstateU Wrote:  

(08-24-2015 05:44 PM)georgia_tech_swagger Wrote:  And behold ... in comes The Fed with QE4 following my exact behavior prediction.


http://www.cnbc.com/2015/08/24/market-ta...f-qe4.html

Yea, you could see this coming. Had they come out today and said "we will raise rates in September and QE is completed for the foreseeable future" we could see a freefall to 12,000 or worse really quick.

Anybody care to explain that article in layman's terms?

I can try.

Quantitative Easing (QE) is basically when the Feds print money, then use it to buy bonds from private banks. It puts more money in the economy, theoretically so that the banks have more money to lend out. A specific QE is when the Feds commit to purchasing an additional amount of bank bonds. These bonds are for 3-10 years, so some of them are always maturing. Therefore, to maintain a certain level, the Feds will constantly purchase additional bonds every month. (Right now around $60billion per month)

QE is more of a last ditch effort. Typically the Feds reduce the interest rates in order to grow the economy. By reducing rates, more people can afford to borrow money, and its cheaper to borrow so more people and companies do it, thereby spurring on the economy. The problem is that you cant lower interest rates below 0%, which is basically where the interest rates for banks have been for 7 years. So if the Fed cant lower interest rates, it switches over to QE, which means they print money and lend it to the banks for a bond at zero percent interest.

The problem with printing money and putting more money into the economy is that it will eventually lead to inflation. When more and more people can borrow money, they buy more stuff, and the price of stuff goes up.

When the Feds print money and lend it to banks at zero percent, investors dont buy bonds because the interest they get paid is really low. ( How's your interest on your savings account looked the past 7 years?) Therefore investors pour money into stocks. Even if a stock only returns a small gain, its MUCH larger than the gains on items like bonds. So money gets heavily invested in stocks, which drives the price up on stocks.

This creates a bubble, as stocks are not valued at their price due to profits, but are driven higher because everyone is buying them because the rate of returns for bonds suck.

The problem comes in when yo start to get inflation. If inflation starts to creep up, the Feds have to act by stopping the QE process. Then they have to look at raising rates.

Which leads us to the stock market carnage. The stock market is in an inflated bubble right now because the interest rate is zero. When the Fed stops printing money, and starts raising interest rates, then the stock market will correct itself to more of a true value of stocks, which is siginificantly less than where the market stands right now.

The feds have slowed the printing of money, and have said that rates will likely increase in 2015. (That leaves Spetember or December for them to do so.) But after the market has gotten real jittery the past few days, it doesnt look like they are going to raise rates in September, and now there's talk of another QE.

And thats the problem. The Fed is having trouble putting the corrected monetary policies in place to prevent the bubble from bursting, because whenever they hint that they might, the markets start to seriously wobble. But its a problem of their own making. They dont want the big bubble to burst out of control, yet they allowed the bubble to get this big to begin with.

So about March. Lol

Posted from my mobile device using the CSNbbs App

(08-24-2015 09:24 PM)maximus Wrote:  Hold on to your shorts.

China and Japan sliding again.

Shanghai is down, but Japan is up 1%, and Taiwan, Australia, and Hong Kong are up 2.5+%.

Largest intraday swing in Dow history, after having the largest weekly VIX increase in history. Thank goodness we have the Federal Reserve's central planning to give us "stability."

Futures are up +500. This might be

(08-25-2015 07:35 AM)QuestionSocratic Wrote:  Futures are up +500. This might be

Its a trap!

(08-24-2015 07:51 AM)blunderbuss Wrote:  How many day traders in here? Frankly, I don't worry about this right now but I'm 36. If I were in my 60's I might worry.

Even if one is in their 60s there is not much to worry about if one is properly diversified. I mean, if one is 100 percent stock at that age then one deserves to lose half their nest egg.

(08-25-2015 02:17 PM)VA49er Wrote:  

(08-24-2015 07:51 AM)blunderbuss Wrote:  How many day traders in here? Frankly, I don't worry about this right now but I'm 36. If I were in my 60's I might worry.

Even if one is in their 60s there is not much to worry about if one is properly diversified. I mean, if one is 100 percent stock at that age then one deserves to lose half their nest egg.

Yea, that reminds me of a woman who was older and at retirement age who worked for Enron who said that she lost her entire life savings of $200,000 when Enron collapsed, because she had all of her stock in Enron.

Having all of her stock in Enron was bad, but her claim that she lost $200,000 was a little inflated. Enron's stock went up 5x in value in about 2 years, which meant she only had $40K for retirement as she approached retirement age. So basically, she never saved enough for retirement, but then hit a golden BB when her retirement portfolio increased 5 times over in a matter of months.

And instead of pulling it out into safer investments for retirement, she let it ride...