There are so many protests happening around the world these days, I wouldn't be surprised if the *corrected* rumor from China was true...
Rumorville
- Thread starter the1
- Start date
instead of being tired you should force you brain to work a little
so you maybe heard Bernanke wanted higher stocks? Actually I thnik he wanted higher house prices
Although you should know desired assets grow faster than not desired
so if we rate assets they will be in the following order
1. commodities
2. stocks
3. housing
Bernanke takes credit for high stock prices but denies for commodity. But it's just impossible in this economic situation
either he is responsible for commodities or not responsible for stocks
in both cases he is just a liar
<i>"Bernanke takes credit for high stock prices but denies for commodity. But it's just impossible in this economic situation"</i>
Isn't this the truth. He publicly stated higher stock prices would generate a "wealth effect" but as inflation pushes stock prices higher it also pushes commodity prices higher. There's always a trade-off. The markets are very efficient. Yes, you are richer, assuming you are actually in the markets, but it's going to cost you more at the pump and the grocery store so are you really richer?
There's another major flaw with The Bernank's strategy. The public is just getting back into the stock market now. Mutual funds do their buying and selling at the end of the day and if you've been watching the markets closely lately you would have noticed the markets have been going vertically upward during the last 30 min's. There is strong participation from the retail investors now...now that we've probably topped. Oops. So much for the wealth effect.
Isn't this the truth. He publicly stated higher stock prices would generate a "wealth effect" but as inflation pushes stock prices higher it also pushes commodity prices higher. There's always a trade-off. The markets are very efficient. Yes, you are richer, assuming you are actually in the markets, but it's going to cost you more at the pump and the grocery store so are you really richer?
There's another major flaw with The Bernank's strategy. The public is just getting back into the stock market now. Mutual funds do their buying and selling at the end of the day and if you've been watching the markets closely lately you would have noticed the markets have been going vertically upward during the last 30 min's. There is strong participation from the retail investors now...now that we've probably topped. Oops. So much for the wealth effect.