Quote from S2007S:
Yellen is just as dovish as Bubble ben bernanke...
So expect the printing press to keep printing for the next 5+ years.
All these market gains are all related to free cheap worthless dollars. Once it's over the biggest drop in history will occur....don't be surprised when it happens though.
I'm quite sure they won't be able to keep QE at these levels.It's a drug and like all drugs it will need to increase to keep the same effects. As far as I can see,macroeconomic data are deteriorating as time passes, and QE is there at the same levels.
Are you sure that in the end market will drop? It could sky rocket instead.
Here's why: now hyperinflation is kept away with the promise that debt will be repaid.FED is printing money that now is expected to return back some day and be destroyed.
This looks highly unlikely to me (not to say impossible). If (or should I say when?) one day all this debt will be zeroed, there will come hyperinflation.
In Weimar Republic, market quotes sky rocketed to keep more or less the same actual value, it was just money that lost value very fast.
And hyperinflation in Weimar republic was one of the main reasons for Hitler getting to power and for the II World War.
And guess what? One of the main reasons to chase and destroy Jews was their connection with the financial system. Hitler & friends held them responsible for the crisis.
Can you see any similarities with current situation?
Returning to hyperinflation and market skyrocketing, the current rise in quotations could be seen as a little anticipation of hyperinflation, that is, market is starting to incorporate this possibility.
What do you think?