"Bernanke’s trying to juice the market, to create wealth for you.”

[denner]

Quote from S2007S:

I think they are trying to prop up markets to get everyone back into the this game and of course we all know what happens when everyone is joining in the fun. It happened to a friend of mine in OCTOBER 2007 when he took $100,000 and bought into about 8-12 different mutual funds, within 18 months he was down close to 50%. He ended pulling some of it out on the way up. Why? Oh because he had no work and had to start living off his savings. Anyone who is smart enough and still held in during this drop will be selling once they start to break even which will be probably around 13k depending on how many stocks were paying dividends during this time.

The fed is out of everything possible to keep this economy running, the more hundreds of billions they spend the higher inflation rises and the more trouble the dollar gets into. I can guarantee you rates will stay as low as they are now for at least another 2-3 more years as the economy will be to dependent on these handouts its been receiving from bubble ben bernanke and friends.

25-26 weeks of consecutive outflows makes your point already. Why do we all simply assume that the equity market uptrend is fueled by anything outside of BD front running and Fed POMO? Of course, you can leveraged funds to the mix, but my point is the market can rise for an extended period of time with net retail investor selling.

 

[shortie]

why does Fed buy $600B of bonds? why not give out $2K gift cards to everyone in US just in time for the shopping season?

 

[the1]

Quite some time ago Bernanke wrote (before he became the Fed chairman) the Fed has one tool in its war chest that it can use almost indefinitely when all else fails. You probably don't have to think too hard to guess what that tool is, assuming you don't already know. Yeah, round after round of QE's. Can you imagine what will happen to the markets if and when BB has to take away the crack pipe? I've never actually watched anyone withdraw from crack but I've heard it's pretty damn ugly. The country is gonna get pretty sick, pretty fast if BB runs out of crack.

Quote from S2007S:

I think they are trying to prop up markets to get everyone back into the this game and of course we all know what happens when everyone is joining in the fun. It happened to a friend of mine in OCTOBER 2007 when he took $100,000 and bought into about 8-12 different mutual funds, within 18 months he was down close to 50%. He ended pulling some of it out on the way up. Why? Oh because he had no work and had to start living off his savings. Anyone who is smart enough and still held in during this drop will be selling once they start to break even which will be probably around 13k depending on how many stocks were paying dividends during this time.

The fed is out of everything possible to keep this economy running, the more hundreds of billions they spend the higher inflation rises and the more trouble the dollar gets into. I can guarantee you rates will stay as low as they are now for at least another 2-3 more years as the economy will be to dependent on these handouts its been receiving from bubble ben bernanke and friends.