Inflation is a bigger threat and the Build Back BS bill will probably, pass, a version of it somehow. I have a feeling Senators Joe Manchin and Kyrsten Sinema will approve some version of it in 2022. That is $1.75 trillion in free monies with no benefit to the US economy exception, increase inflation some more. Like pouring gasoline over a fire. It is not going to be good for most Americans.
I think all you guys looking for a crash...
- Thread starter SoyUnGanador
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The FED is expect to end bond buying in March. This of course doesn't mean the government will stop giving out money, but the financial side should feel this. And then of course they said at their last meeting that they are penciling in 3 rates hikes for 2022. So we probably don't have to wait 3 years for fireworks.
They will continue the buy backs?
With what money?
Getting loans will become harder and companies which have debt will need more and more cash to pay for their increasing interest payments
The Fed is lying, it will never happen.
I completely agree, but this will also be reason for fireworks when they have to start backpedaling.
Yes, I saw a post earlier somewhere about all the central banks raising rates. If it turns out that real returns are better for cash somewhere else, expect bad things to happen, very quickly.
That's not necessarily true. Wealth can be, and certainly is created.
At one end of the extreme take Amazon.
At the other end say you start a small company that makes previously unheard of widgets that for whatever reason a market has suddenly been created for. You're creating wealth.
At who's expense was Window's created? I suppose you could argue some dinosaur tech company that suffered back in the day, but a trillion dollars later? Uh-uh.
We would not be enjoying the standard of living we do if the creation of wealth was a zero sum game.
ie in order not to let other people suffer losses,
One should intentionally suffer losses so that others can be wealthy.
The more one suffers losses, the more others can be wealthy.
And if one is earning money, remember others are weeping.
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If the Fed stops buying bonds as it claims, won't bonds very quickly dip hugely in price, driving yields through the roof? And won't that crush the economy? I.E. the U.S. government has to start spending a ton more on interest going forward (although ratcheting it up as bonds are issued at the new much higher interest rates), and higher interest rates mean higher borrowing rates for private individuals crushing business growth and what not? And then will not the U.S. government pressure the Fed to start buying bonds again to keep rates down, continuing massive inflation?
Some people are going to be rich because they see opportunities inspite, of the turmoil. A doctor friend, had 3 nurse in the hospital she works in. Those 3 nurses during the crash of 2008, bought 3 months salaries worth of BAC at $5.00 per share. They made a ton of monies beyond their wildest dreams. I don't think they sold out of all their shares. "You got to be in it to win it." Forgot which top trader said that.