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The cheap-money bubble to end all bubbles? Yellen=Bernanke=Yellen. A banker's BFF.
And what about the people who had savings? This is obscene... and you are forced into buying stocks because that is the only way they will allow you to make any money
Forced to buy stock? There are ways to make money without huge counterparty rick or playing the Wall Street Las Vegas game.
You buy gold bullion.
Please look at a 50 year chart of gold prices. Adjust it for inflation, and explain to me how you're not taking the biggest risk of all?
Oh wait, I know.. because the gold price suppression games simply can't continue much longer?
Cheap money, come and get it, cheap money, here gamble it all, cheap money, we will give you more if you lose it... here cheap money.....
That would make a bitchin' license plate.
If money is free, does it still remain a store of value? That may well become an incresingly valid question...Debt disappears when you devalue the currency in which it is owned.
Define money? If you mean USD, it has never been a true store of VALUE due to devaluation (also called inflation). Gold is a store of value.
Gold is a store of value? It certainly isn't a very good one. Please pull up the chart from 1950 to 2000 and show me how much "value" got stored in gold.
Life is Beautiful! This is certainly a "FREE" Country!
The new disaster flick
"2013 - The Raising"
Money is only free if you are a banker.
The Fed rates will never be over 1% ever again in my lifetime.
mako 1964 - 2011 rip
This is the same insane thinking that got us hear in the first place......nothing changes........corruption and stupidity are still running the Federal Reserve.........in congress that has always been the case.
Welcome to Japan.
Exactly Blackbeard. Japan experience included stock collapse over 80%. Japanese business and government became one and the same. Like GE and the Treasury.
The lesson of Japan is that ZIRP has no correlation to equity prices over the long term. Anyone who thinks 0% rates guarantee a perpetual upward trend is making a very, very big mistake.
Bitch should do the world a favour and cut her own throat.
She gives me a softie. :shudders:
How very sad, nonsense economic babble puked into the media punch bowl to try and save the democrats this fall.
Drink up democrats, the party will end in November.
Even sadder: The notion that there will be a difference between Republicans and Democrats.
Both parties are squier boys to the banking oligopoly.
Keep feeding the financials until they explode!
When you walk into a shop, the stuff they flog for a few cents is the stuff nobody wants. The cost of money is 0 for the chosen few. But it ultimately means that whatever is given away for nothing is worth exactly this, nothing.
It’s an incestuous pattern. The Fed cartel’s got to have people who will take orders, i.e., the Janet Yellens. These are critical times. To have some independent thinker in there would be pretty dangerous. Don’t you see?
Even Charlie McCarthy, Edgar Bergen’s dummy, had a mind of his own: Bergen, why are you doing that?
It’s like you bring Yellen in, set her on your knee, and she says: “We’re going to keep the Fed funds rate at zero for three years!
Bernanke: Shhh, Janet. Don’t say three years! Say until things improve!
Yellen: Three years.
Bernanke: No, Janet! Just say until things improve.
Yellen: Until things improve!
I was thinking the same thing while watching Turbotax Timmiee
at today's "dog and pony show", DC is full of inbreeding whores!
2010 closing high for the dollar index today -- which is probably a positive sign for risk assets when viewed through the lens of the massive and growing deficit (excluding the pending contribution to the Greece Fund), the pending jump in taxes (note data released today shows sales tax % highest on record in 2009, and that ill take the over for 2010), the spike higher in housing inventory (reported housing inventory, that is) and all time record high fed balance sheet last quarter
Luckily the Vix is back where it was in October 2007 so the market is braced for any unforseen problems the surge in the dollar is contemplating
The huge transfer of wealth from savers to banks continues - along with the huge bonuses the bank's pay to their senior people for sitting around collecting carry. Yellen is a dove and rates probably need to stay low for a while. But low may not be mean zero and Hoenig is correct in saying that the extended period language can help start and fuel bubbles (we are in one now). Think the Fed will be setting the stage to remove the extended period language but not let the market think they are embarking on a protracted series of dramatic increases in s.t. rates.
With respect to Yellon's Japan analogy. They were somewhat "lucky" in that they were the only G-7 country in deep shit. This time, we have several. The outcomes may be very different. Also, as I have repeated several times, the FED may congratulate themselves and think the MBS purchase program was a success. THat is no the key question. We will judge that if/when they decide to sell the asset class. I for one believe they made a mistake when the expanded it to 1250b from 500. They should have bought less mtgs and more treasuries. Mtg spreads are very tight but I think the mtg rate is more important and I am pretty convinced that the rate would be LOWER and participation broader (although spread to Treasuries wider) if they bought both MBS and longer dated Treasuries. The proof will be when/if they sell. Looking at negative 10 yr spreads tells me that I am correct. It is not a sign of health/
That’s brilliant. When the “extended period language” is removed, the market will have Yellen’s easy money implication to remember and calm the fears of the bulls.
Yes - I think they want to get overnight rate up to around 75 -100 bp (pre "emergency "rate) and keep it there for a while - However ....
They are a bunch of wimps and still are scared from the 94 rate hike experience. 1994 gave us 2003/4 measured approach which created the "conundrum" .What the heck did idiot Greenspan would think happen when he told everybody "we will raise rates 25bp at a time because we dont want anyone to lose money". He killed volatility and gave huge incentive for people to use leverage to compensate for lack of spread/carry. It is no coincidence that the subprime disaster started while the Fed was HIKING rates. No way investors would have bought those bonds at such tight spreads with so much leverage if it was a normal rate hike process .
If you guys think things were bad under Greenspan and are worse under Bernanke, then pray that this crazy dingbat never gets a chance to sit on the monetary throne.
This wont ease up credit markets and very little will ever end up in the economy--
This is how the banks are recapitalizing--
Borrow at zero buy up the long bonds-helping to subdue rates and live large on the spreads--
Bonuses all around-next x-mas--
The Fed will cease to exist well before they can raise.
They pledge allegiance to the FIAT, one Global nation super stazi state, Under Weirmark's Weimar(t) Super Hyper Inflation store.
That is until the FED after hours pump turns into the mother of all dumps.
Shit. This ain't funny any more.
USD index continues to get stronger, and we know what that means ...
Dow 100,000? Why? Because rates are low? How'd that work out for Japan?
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