So, no taper!
- Thread starter Tsing Tao
- Start date
send traitor to Texas
Fed is slave to the stock market. The moment they TALK about tapering, the market doesn't react as well, thus causing the untaper with no end in sight. The only question is how many iterations of this talking about tapering and untapering we going to go through over the next number of years.
Quote from drownpruf:
Went to limits of net liq on gold and silver at oanda prior to Fed. On the assumption that the loss of Summers reinforced the addiction to (-) real rates. Better than I could've imagined.
I am going to sign off now (permanently). GL to all.
nice man hopefully you were short some vol today.
Only the FED has 1 trillion of other people's money to give to pigs in wall street. Guys like Buffet and the money managmenet firms. 90% of the market is long and who will they sell their paper for 85 billion USD cash.
If I had 85 billion in cash USD, I wouldn't be buying bonds or hold cash making 1% and losing value. hence the bond buying is just creating money that doesn't exist and giving it to buy bonds and stocks. The bond sellers who sold their bonds are the banks, after they get the 85 billion in USD CASH. the market is suddenly increased cash of 85 billion and it goes to the market. hence you have high p/e multiples and stock values that are like 200% more than they should be trading at in the economy.
taper has no effect in job creation or housing market.
people were buying houses when interest rates wer 7% if they had jobs. it's jobs not interest that effects the job market.
US like detroit, it's bad fundamentals.