Has the FED begun to fix the TRUE problem?

Humpy said:
Is qualitative easing different from quantitive easing ?
Just good ole printing some more of the stuff ?
Apparently the mafia in Russia print up loads of dollars too. It is one of the easiest currencies to copy.
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By qualitative easing, I meant rather than throwing tons of money at the problem and hoping for the best, they would begin to target and plan a recovery for the society using a real strategy. Just like a company or individual would do if they faced a serious problem.

It's unlikely that the results we see today were the result of careful reasoned planning. Their methods have failed miserably IMO. Time was wasted not facing the real issues. We need a new plan.

Therefore no blaming the weather, other countries, the last administration, the GDP numbers being too high for 40 years in the past, the congress, the president, the banks, Warren Buffet, the boomers, the millennials etc. Let's fix the problems, we can always fix the blame later.

The problem is simply too much debt and the fractional reserve system principle of exponentially rising debt. (The FED surely knows that truth.) The Chicago plan from 1930s was one proposed solution. Is it the right one? I don't know but a developed plan with measured objectives and feedback during the process is needed.

For sure the old ways will not resolve the problem and it will not magically disappear. Hope is not a strategy

Plato said that democracy always ends in tyranny . We see hints of tyranny today. We need a new plan that benefits as many citizens as possible. I suspect that a free internet is a potential contributor to that solution. (I am not sure since I can't find a quote from Plato about the internet - believe or not!)
 
smallStops said:
In my views the real problem is these "too big to fail" have an easy time because there is not enough competition: they are basically in a monopoly.
May be making it easy or encouraging business moguls to associate and create new banks. I mean how easy would it be for the "too big to fail" to take it easy, if 200 new mega competing banks were created by different business moguls consortium?
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Yup. Too big to fail is simply another example of changing reality by passing laws. We just make it illegal to fail and everyone wins. Next up, a law making it a crime to be poor - whoops, too late!
 
I agree StarDust. Marking groups as too big to fail is a dangerous game to play. The whole idea of the free market and a democracy was that if the people think something should fail or change, then it should fail. America seems to be going against those very ideals by putting in place certain institutions that must survive which strikes me as being very undemocratic. The key is transparency not “too big to fail”. If the banks had to tell you how they invested your money, would you put your life savings with the bank that gambled on credit default swaps or would you put it in the bank that lent money to local homeowners and businesses?
 
Who really matters in just about all major countries today ?
1. The politicians
2. The military
3. The secret police + police
4. big business

The top 3 strive for supremacy. Notice how the US supported the military against the legally elected politicians in Egypt ? The first batch of prisoners ( nearly 700 ) all sentenced to death and more to come. Not a word out of Washington, London etc. about human rights !!
 
Humpy said:
Who really matters in just about all major countries today ?
1. The politicians
2. The military
3. The secret police + police
4. big business

The top 3 strive for supremacy. Notice how the US supported the military against the legally elected politicians in Egypt ? The first batch of prisoners ( nearly 700 ) all sentenced to death and more to come. Not a word out of Washington, London etc. about human rights !!
More...
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Well actually the Egypt military overthrew the Egypt Muzzy Bro hood pres, supported by US Pres Obama Hussein,LOL.Many of those 700are muzzies out of control/rioters.Sure our lawgivers sent Egyptian military HI tek planes, but Israel was for that also.

Actually the church + the NRA matter a lot....;
just ask Mayor Emmanuel of Chicago he had to pay the NRA,over $1,000,000 in legal bills not to long ago.

Sounds like the FED is right to require increase in reserves in BAC, Citigroup.....[Citi is a penny stock but they reverse split it ten times, to fool the simple.]:cool:
 
Bob111 said:
---Wall Street soars after Fed minutes signal support---

http://finance.yahoo.com/news/futures-flat-alcoa-results-fed-113419317.html

3 days down-enough! Fed is calling PPT :D
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Well now we know why there are no 10% corrections in this market. If the market drops 5-8% the PPT is back buying ES contracts by the handful.

I think only something like Putin re-establishing the old Soviet Union would bring this market down 10%+ -- which is likely. I think the Crimea annexation is similar to Hitler annexing Sudetenland.

What does the Fed hope to achieve by continuing this monetary easing? Surely they don't believe companies are going to hire workers because of 0% interest rates. And you can't create inflation with no velocity happening.

Deflation is inevitable thanks to the financialization of the economy in the last 20+ years. Collateralized Rent Obligations and the return of CMOs & CLOs? What a joke. Here in California they have Revenue Anticipation Bonds. I mean WTF is that.
 
I remember year ago or so, when US market drops 5-8% China start whining something about FED policy(are rates going to stay low and will you support stock market? ) yeah..that straight. So-feds making supportive comments after only couple down days didn't really surprise me.
 
Bob111 said:
I remember year ago or so, when US market drops 5-8% China start whining something about FED policy(are rates going to stay low and will you support stock market? ) yeah..that straight. So-feds making supportive comments after only couple down days didn't really surprise me.
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If one believes that the FED is out of bullets and that the world GDP is dropping, then the taper exit plan for the is problematic, doing nothing is problematic, pulling back all the stimulus money is problematic, continuing with QE is problematic, etc. etc. etc.

A sudden market drop, especially one that whacks margin borrowings, could force their hand. A sudden jump in interest rates, leading to sovereign defaults or insurance company troubles, could force their hand, a world war could force their hand, a sudden move of significant size away from the base currency could force their hands, a large increase in government needs for debt could force their hand etc. etc. etc. Other than those small concerns, things are better than they have ever been in 2014!

So maybe that explains the jumpiness of the FED currently - how can they exit QE but then again, how can they not do so? What does the movie say - “Interesting game….the only winning move is not to play.”
 
nitrene said:
Well now we know why there are no 10% corrections in this market. If the market drops 5-8% the PPT is back buying ES contracts by the handful.

I think only something like Putin re-establishing the old Soviet Union would bring this market down 10%+ -- which is likely. I think the Crimea annexation is similar to Hitler annexing Sudetenland.

What does the Fed hope to achieve by continuing this monetary easing? Surely they don't believe companies are going to hire workers because of 0% interest rates. And you can't create inflation with no velocity happening.

Deflation is inevitable thanks to the financialization of the economy in the last 20+ years. Collateralized Rent Obligations and the return of CMOs & CLOs? What a joke. Here in California they have Revenue Anticipation Bonds. I mean WTF is that.
More...

Revenue Anticipation Bonds ..... I love it.... is that what is funding the social security anticipation as the number of retirees grows relentlessly?

As for the Ukraine situation, it is always important to know one's enemies. Russia, Nato and Europe are certainly not angels but I am reminded of that saying from so long ago:

“All warfare is based on deception. Hence, when able to attack, we must seem unable; when using our forces, we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near.” - Sun Tzu, The Art of Warfare

Trading is like a game of war in that, someone must lose and significant capital size is an advantage but there are no guarantees in trading or chess. One small mistake and a series of moves can blow up in your face on the chessboard.
 
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