Quantitative Easing is Done. For Now.

[XD45 7,124]

Now that the fed is sitting on 4.5 trillion fake dollars they are done printing fake money for now.  They say they are going to just "hold on to" the fake money and not dump it into the economy.  Guess we'll see how long that lasts.

 

The big balance (fake though it is) will be irresistible to politicians and it won't be long before they find something they just have to spend it on.  The only reason qe hasn't tanked the economy is that the money has been held back.  The real damage will happen when it's spent.

[SmilinEd 364]

Yeah, I'm thinking right after the markets sell off 3% tmrw, they will pump the afternoon.

[HB of CJ 1,263]

They probably held off or backed away because they know very well that if they dumped that much more fake worthless debt instrument Federal currency into the battered USA economy, the inflation rate would respond immediately ... and not over a couple months like before. Things are so jury rigged as they are.

 

More QE could collapse the stock market. Then it would crush the bigger bond market. Then the snowball would truly be loose and rolling down the hill. Anybody know what the true inflation rate is? I for one do not understand exactly why our Federal government is so keen on running the USA freight train off the tracks.

 

So many bubbles. Currency, stocks, bonds, banking, real estate, hard commodities, food, fuels, etc.. We now begin to understand how close we came back in 2008. It is like the Fed is going out of its way to create that perfect storm. I think I understand basic economics but I do most certainly do not understand any of this.

 

HB of CJ (old coot) Less than 5 years until it all comes down ... hard.

[SmilinEd 364]

Markets will sell off and CNBC, MSNBC, and the other liberal networks will spin it because the Evil Fucking Republicans won on Tuesday.. just watch

[XD45 7,124]

I was surprised they announced this before the election.  Wait until the day after the election and they could blame any drop on the election.

[james lambert 3,059]

bushes fault

[SmilinEd 364]

I was surprised they announced this before the election.  Wait until the day after the election and they could blame any drop on the election.

Gotta prime the well and by tuesday there will be Blood in the streets and not eye blood either

 

bushes fault

Mind reader

 

[U.S. Pratorean 1,234]

I wouldn't believe the .gov if those f*cking liars said water is wet and fire is hot.

Edited October 30, 2014 by JAG

[SmilinEd 364]

I wouldn't believe the .gov if those f*cking liars said water is wet and fire is hot.

Well you don't have to believe the government, you just need to believe what CNBC, MSNBC, CNN, and other networks are going to spoon feed ya on why the markets are selling off this close to the election.

 

Who appointed Yellen...?

 

 

[thebuns1 4,323]

Why should we believe them when they arm the very people they tell us are our enemies?

 

Its all bullshit lies.

[U.S. Pratorean 1,234]

 

I wouldn't believe the .gov if those f*cking liars said water is wet and fire is hot.

 

Well you don't have to believe the government, you just need to believe what CNBC, MSNBC, CNN, and other networks are going to spoon feed ya on why the markets are selling off this close to the election.

Piss on them as well. They lie even more than the .gov.

Although they are beginning to report that Barry and co. hate the press and have not allowed them to fully investigate his corrupt, joke of an administration.

This is just more steaming BS because they are attached to Barry's nuts and have been from day one and now that it is painfully obvious that this dipshit is the worst prez in history they want to "be able to investigatively report" and do what good journalism demands. This translates to get any and all dirt on the repubs. seeing how they will most likely take the Senate and again lie and make up shit so that other corrupt lying POS Klinton will appear the better choice in 2016.

If these disgusting oxygen thieves really did their job that asshole Barry would be in jail along with all of his cabinet.

It's all a crock of shit and the media can FOAD.

Edited October 30, 2014 by JAG

[gunman1 1,753]

 

I wouldn't believe the .gov if those f*cking liars said water is wet and fire is hot.

Well you don't have to believe the government, you just need to believe what CNBC, MSNBC, CNN, and other networks are going to spoon feed ya on why the markets are selling off this close to the election.

 

Who appointed Yellen...?

 

 

^^^^^^THAT is where all the trouble begins....the shitstain at 1600 aint stupid when it comes to causing trouble and stirring the pot, hell it's really all he is god at.

[thebuns1 4,323]

Don't worry fellas. Its only going to get worse.

[pjj342 632]

And everyone thinks we are better off with a central govt. 

[SmilinEd 364]

Why should we believe them when they arm the very people they tell us are our enemies?

 

Its all bullshit lies.

I'm not saying you should believe them, I wouldn't. just saying the liberal media going to circle the wagons and protect the progressives

 

 

 

I wouldn't believe the .gov if those f*cking liars said water is wet and fire is hot.

Well you don't have to believe the government, you just need to believe what CNBC, MSNBC, CNN, and other networks are going to spoon feed ya on why the markets are selling off this close to the election.

Piss on them as well. They lie even more than the .gov.

Although they are beginning to report that Barry and co. hate the press and have not allowed them to fully investigate his corrupt, joke of an administration.

This is just more steaming BS because they are attached to Barry's nuts and have been from day one and now that it is painfully obvious that this dipshit is the worst prez in history they want to "be able to investigatively report" and do what good journalism demands. This translates to get any and all dirt on the repubs. seeing how they will most likely take the Senate and again lie and make up shit so that other corrupt lying POS Klinton will appear the better choice in 2016.

If these disgusting oxygen thieves really did their job that asshole Barry would be in jail along with all of his cabinet.

It's all a crock of shit and the media can FOAD.

 

They still love him, but I think Ebola and Lone Wolf/Terrorists have them rattled. those 2 problems know no ones political views when they hit

[SmilinEd 364]

http://nypost.com/2014/10/20/plunge-protection-behind-markets-sudden-recovery/

 

Oct 20

 

Mysterious forces were trying their best, but they couldn’t keep the stock market from swooning Wednesday.

They failed in the morning, despite massive purchases of stock index futures contracts. Within minutes of the market’s opening, the Dow Jones industrial average was down 350 points. Later in the day — after a lot of shocking ebb and flow — the Dow bottomed out with a decline of 460 points.

It was only in the last hour of trading that the market saviors managed to trim the Dow loss to just 173 points. And they succeeded only after Janet Yellen’s private, upbeat remarks about the economy were leaked.

Welcome to a new kind of stock market — one that the average investor should refuse to be invested in.

Anyone whose investments tightly track the major indices is now losing money since the beginning of 2014. The Dow is down 1.1 percent on the year, with the S&P and Nasdaq up 3 percent for 2014.

Just for the record, I’ve been telling you for years that the stock market was in a bubble and that you should enjoy it while it lasts because bubbles always pop.

Of course, if you could time the end of the bubble, you’d be doing quite well. Miss the end and you are back to where you started. Or worse off in terms of confidence and finances.

Welcome to a new kind of stock market — one that the average investor should refuse to be invested in.

I obviously don’t know whether we are now seeing the end of the current stock market bubble, during which the S&P index has risen 102 percent since October 2008. But there are people like my friend Peter Grandich of Trinity Financial, who has been excellent at predicting market corrections in the past and who thinks this is the end.

I already brought up the sensitive issue of a market crash in a column on Oct. 9 that began: “Is this the month the stock market will crash?”

October is historically a spooky month for stocks, and in that column I rattled off the crashes and major price corrections of 1929, ’78, ’79, ’87, ’89 and 2008 to prove it.

Will 2014 soon be added to that list? That’ll be the cliffhanger in today’s column.

But let me explain about the unknown forces in the market these days. Call it by a nickname — the Plunge Protection Team. Or call it the President’s Working Group on Financial Markets, the official name given to the group when it was formed by President Ronald Reagan after the market turbulence of 1989.

These forces may be working from a script in the “Doomsday Book,” which the US government recently fought to keep secret when it was brought up last week during the AIG trial in Washington.

Here’s the bottom line: Someone tried to rescue the market last Wednesday. And it’s becoming a regular occurrence.

The details of last Wednesday morning are these: At the same time the Dow was off 350 points, the S&P index was down 43.80 points, That was an enormous decline in just 11 minutes of trading and it was an indication that Wall Street was not having a good day.

Then, someone (or something) started buying S&P futures contracts en masse. Twenty-one minutes later, the S&P index had regained 30 of those lost points and was back at 1,861.

Maybe you’ll believe that there was some manipulation going on if you knew that a guy named Robert Heller, who was a member of the Federal Reserve’s Board of Governors until 1989, proposed just such a rigging as soon as he left the Fed.

Look it up. Oct. 27, 1989, Wall Street Journal. Headline: “Have Fed Support Stock Market, Too.” By Robert Heller, who had just left the Fed to head up the credit card company Visa.

“It would be inappropriate for the government or the central bank to buy or sell IBM or General Motors shares,” Heller wrote. “Instead, the Fed could buy the broad market composites in the futures market.”

In case you don’t know the lingo, Heller is proposing that the Fed or government purchase stock futures contracts that track — and can influence — the major indices.

These contracts are cheap and a government could turn the whole stock market around quickly — but probably not permanently.

Wow! Doesn’t that seem a lot like what happened Wednesday at 9:41 a.m., when S&P futures contracts were suddenly and mysteriously scooped up?

Let me allow Heller to finish his thought because it’s important to anyone who believes in free and fair markets.

“The Fed’s stock-market role ought not to be very ambitious. It should seek only to maintain the functioning of the markets — not to prop the Dow Jones or the New York Stock Exchange averages at a particular level,” he continued.

But times change and so does thinking. In recent weeks, we’ve discovered that the CME Group, the exchange in Chicago, has an incentive program under which foreign central banks could buy stock market derivatives like the S&P contracts at a discount.

It’s not that these foreign banks need a break on the price of their trading. But it does show that there is a back-door way — through foreign emissaries — for the Fed and the US government to prop up stocks like Heller suggested, and — maybe — not get caught.

[thebuns1 4,323]

I didn't assume you wanted us to buy into their bullshit ed. Its all good. I'm simply stating how fucked up they think everyone is. Its amazing how so many people have no idea how to think for themselves and outside the box. With Thais much stupidity in our country, its no surprise that the feds get away with as much as they do.

[Big John! 2,062]

This thread is quite obviously RACIST.  The market will crash due to workplace violence.  You guys need to all convert to the religion of peace and get along.

[Doug Hartley 526]

The Fed is not sitting on 4.5 trillion in fake money, they already payed the 4.5 billion out.  They now hold 4.5 trillion in debit instruments, like bonds, that they purchased with the fake money.  The damage has already been done.  I think their idea is to sell the debit later when things get better.  They have been propping up the economy for years with this ruse, and things are getting better for the rich folks but the little people will continue to get screwed.  Since rich people and corporations run the government I doubt anything will ever change.

 

Doug

 

Quantitative Easing: http://lexicon.ft.com/Term?term=quantitative-easing

[lbsrdi 1,078]

And everyone thinks we are better off with a central govt.

 

Not I

[Rhodes1968 1,638]

And everyone thinks we are better off with a central govt. 

 

Strangely we had one that worked well enough to win an "unwinable" war without the threat of violence to individuals or the power to destroy liberty.

 

Of course that had to go post haste.

[magsite20 1,664]

got to love how the law and government work

they do it and it's quantitative easing and policy

if I did it, it's counterfeiting.

[pjj342 632]

 

And everyone thinks we are better off with a central govt. 

 

Strangely we had one that worked well enough to win an "unwinable" war without the threat of violence to individuals or the power to destroy liberty.

 

Of course that had to go post haste.

 

The cold war?  If so, our nation understood embarking in war with russia meant nuclear roulette, hence the money made from the war would be pointless if the worst case happened. 

 

But that may not be what you were referring to...

Edited October 31, 2014 by Boomsick42

[Spacehog 2,218]

All of my 401k balance just got transferred from growth stocks to cash. I'll jump back in when the Dow hits 13,000-13,500. Seen this too many times to just ride it out this time.

[SmilinEd 364]

The Fed is not sitting on 4.5 trillion in fake money, they already payed the 4.5 billion out.  They now hold 4.5 trillion in debit instruments, like bonds, that they purchased with the fake money.  The damage has already been done.  I think their idea is to sell the debit later when things get better.  They have been propping up the economy for years with this ruse, and things are getting better for the rich folks but the little people will continue to get screwed.  Since rich people and corporations run the government I doubt anything will ever change.

 

Doug

 

Quantitative Easing: http://lexicon.ft.com/Term?term=quantitative-easing

Doug,

You are 100% correct, the markets are in such a bubble (started in 08) and we (taxpayers) are on the hook for the $4.5 trillion..!!! Plus the $18 trillion the brain trust have on credit. D.C. also owes the ppl who have paid into the SS trust fund $4 trillion.  Our GDP is $16 trillion.

 

I have a theory why a majority of ppl don't give a Shit, because they live there lives in massive debt just like the Fed/government.

 

[Rhodes1968 1,638]

 

 

And everyone thinks we are better off with a central govt. 

 

Strangely we had one that worked well enough to win an "unwinable" war without the threat of violence to individuals or the power to destroy liberty.

 

Of course that had to go post haste.

 

The cold war?  If so, our nation understood embarking in war with russia meant nuclear roulette, hence the money made from the war would be pointless if the worst case happened. 

 

But that may not be what you were referring to...

 

 

Articles of Confederation. 

 

Want to guess who was behind having it trash canned? 

 

If you guessed NY bankers you would not be wrong.