BUBBLE ben bernanke "risking sequel to 2008 crisis"

Quote from piezoe:

Be it noted that their are focused remedial actions that can be taken. For example, Greenspan was criticized for not tightening on the margin requirement to cool off excessive use of leverage. I think the Bernanke Fed should strongly consider tightening up a bit on margin requirements. That will cool down market volatility and should take some of the steam out.

Is the housing market being manipulated? It is perfectly legal, of course, to hold inventory off the market in the expectation that prices will rise. Possibly the major players, Chase, Citi etc, are holding bank owned real estate off the market to create an artificial shortage in some markets with the intention of gradually putting more of their real estate on the market as prices rise. The Fed has it in their power to make it less advantageous for banks to hold onto real estate. All it requires is some creative thinking.

The point is that there is a myriad of focused actions the Fed can take to keep asset bubbles from becoming unmanageably large. There will always be bubbles. But one thing I learned from studying Soros is that the formation stage of a bubble is clearly identifiable and therefore bubble extremes are preventable.

Greenspan believed that market forces would eventually deflate these bubbles more or less harmlessly, because he believed in market equilibrium theory. According to Soros' Reflexivity Theory, however, this is faulty thinking. When markets get seriously out of whack they can, via positive feedback loops, get even more out of whack. I think Soros is correct, and if he is, then it is possible, through timely focused action, to head off the formation of major bubbles.

Notice Roubini's use of the preposition "If" when he says: " If the exit cannot be navigated successfully, a dovish Fed is more likely to blow bubbles." That "If" qualifies his statement. We'll have to wait and see what happens, but I don't see it as a foregone conclusion that this time won't be any different from the last time. There are some very sharp economists working for the Fed. Until proven otherwise, I am going to assume they have learned something from past mistakes.
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not an economist so from a dummies simple take,all i see that they have learned is to print and eventually zero out any soc security ,pensions,future of any kind,whilst the medicaid medicare system is openly robbing the govt accts,by that i mean hospitals and nursing care systems charge up the wazoo,for services not entirely necessary but if not watched , then do the test anyway and charge, a friend has a health care company, they pay doctors for references to seniors,provide as many services as possible and collect,giving doctors cash kickbacks on each patient,he has been in that business for 3 years and tells me it's just the way it works,if i know this and he knows this then so does uncle sam,the only way he would look the other way is if he was also taking a piece off the top, sort of like mayor daily and the 75 year parking meter deal, ...the problem is the graft at the top has turned to just legalized money transferring,the banks can't be prosecuted, the medical industry is doing everything by the book,going back to the chicago example,when everyone was working and there were plenty of taxes to skim,it worked, they lost the tax base and kept the skimmers, so to fix that we just print more,the skimmers don't care, the lawmakers don't care,they are being paid not to...which in fact makes that their job
 
Quote from ammo:

not an economist so from a dummies simple take,all i see that they have learned is to print and eventually zero out any soc security ,pensions,future of any kind,whilst the medicaid medicare system is openly robbing the govt accts,by that i mean hospitals and nursing care systems charge up the wazoo,for services not entirely necessary but if not watched , then do the test anyway and charge, a friend has a health care company, they pay doctors for references to seniors,provide as many services as possible and collect,giving doctors cash kickbacks on each patient,he has been in that business for 3 years and tells me it's just the way it works,if i know this and he knows this then so does uncle sam,the only way he would look the other way is if he was also taking a piece off the top, sort of like mayor daily and the 75 year parking meter deal, ...the problem is the graft at the top has turned to just legalized money transferring,the banks can't be prosecuted, the medical industry is doing everything by the book,going back to the chicago example,when everyone was working and there were plenty of taxes to skim,it worked, they lost the tax base and kept the skimmers, so to fix that we just print more,the skimmers don't care, the lawmakers don't care,they are being paid not to...which in fact makes that their job
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you nailed it........corruption entirely from the top.
 
which makes the money being skimmed off the bottom,unemployment welfare,chump change,they are the sheep carrying the lottery tickets into the clinics,the middle class, the voting power per head count,has the power to vote every dem and rep out each time they come up, i thought about paying for billboards expressing that view,at the major intersections getting on or off the expressways last election, but feared i would be thrown in guantanomo for a terroist act
 
from piezoe,
"There are some very sharp economists working for the Fed. Until proven otherwise, I am going to assume they have learned something from past mistakes."

for 100 years the fed has been an inflation engine. bingo, with piezoe on the scene, they have finally learned from their mistakes.

sheer coincidence
 
Quote from ammo:

... the medicaid medicare system is openly robbing the govt accts, ...the problem is the graft at the top has turned to just legalized money transferring...the skimmers don't care, the lawmakers don't care,they are being paid not to...which in fact makes that their job
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"The hardest thing in the world is to keep pigs away from a trough."
 
its going to be hard to pull off. i bought into a short fund a few different times in the last 6 months at small amounts so not down much in them. i wish i did not do it though but i think in the longer view it will make money. i heard the words melt up and its a perfect wording. there will be no happy ending but this can go for awhile but it will break down hard when it breaks. i can't even believe bubble ben can talk about buying more per month when his current buying plan is not working. the government issues bonds and the fed prints money to buys them it makes no sense.

Quote from budcampbell:

I am ready and waiting for some easy money to be made on the downside.
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Everyone's confusing the current asset price bubble with the idea that Fed policy is somehow "working". Actually the two are unrelated. Ben's printing press is exactly the same sort of meme as the new economy was at the start of 2000.

You didn't hear much about the new economy after the dot com crash. You won't hear much about the printing presses after the coming crash.
 
LOL. The top is NOT in.....so who cares about all this!!!!

Buy 10,000 SPY's......let it ride. Hopefully you are already rich from the big move up.

History is never the same....so this time the market MUST go higher. Remember, the Fed makes money as the market goes up...trust me, they do. this is obviously their strategy, even if you don't get it.

don't ever listen to this crap.....they need liquidity.

now get out there and buy!!!!

to be rich, you must think differently!!!

Choose (A) you get rich while suckers get poor and have debt tomorrow

(B) you get poor while strangers tomorrow are not as broke...

I choose (A)!!!! Trust me, they all do!!!!
 
Sorry, but how are you "thinking differently" by going long? Sentiment surveys are now the most bullish since records began.
 
The Bernake was part of the Greenspan Fed and voted for Greenspan's policies - why would he be any different?

With the fixing of LIBOR and ISDAfix, the banks with help from the Fed looks like a huge case of Enterprise Corruption.

RICO not only is meant to bust them, but to confiscate all the ill-gotten gains from criminal activity as a legal remedy.
 
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