The $4 trillion force propelling US stocks to record highs

imjohn · Nov 22, 2019

https://www.cnn.com/2019/11/22/investing/stocks-market-fed-overnight-lending-rescue/index.html

I liked the last line, "modern central banking is very much an experiment. And experiments often bring about unintended side effects."

S2007S · Nov 22, 2019

imjohn said:
https://www.cnn.com/2019/11/22/investing/stocks-market-fed-overnight-lending-rescue/index.html

I liked the last line, "modern central banking is very much an experiment. And experiments often bring about unintended side effects."

It's all about juicing the markets...I ponder what the markets would be like if there was never fed intervention. No stock buybacks .no overnight lending rescues, , no tarp, no fed cutting rates everytime wallstreet cries like a little bitch, .it seems as much as a free market should exist it will never exist. The markets are extremely reliant on nothing but free money and unlimited fed intervention.

nooby_mcnoob · Nov 22, 2019

S2007S said:
It's all about juicing the markets...I ponder what the markets would be like if there was never fed intervention. No stock buybacks .no overnight lending rescues, , no tarp, no fed cutting rates everytime wallstreet cries like a little bitch, .it seems as much as a free market should exist it will never exist. The markets are extremely reliant on nothing but free money and unlimited fed intervention.

The reason such a market cannot exist is because the plebs really don't see the market as worth their while. They will just buy a house, pay it off and then reverse mortgage it till they die. It's not a bad life.

Stock market, art, wine, all these things are now playthings of the wealthy which they trade between each other trying to get one over on the other.

gaussian · Nov 22, 2019

nooby_mcnoob said:
The reason such a market cannot exist is because the plebs really don't see the market as worth their while. They will just buy a house, pay it off and then reverse mortgage it till they die. It's not a bad life.

Paying off a house will only guarantee you a return equal to your mortgage rate. People will still put money into mutual funds.

A market like that can't exist because inflation would crush the market. The purpose of fed intervention is to control the supply of money in order to stabilize a currency.

tiddlywinks · Nov 22, 2019

gaussian said:
The purpose of fed intervention is to control the supply of money in order to stabilize a currency.

Stabilize the currency. hmmm. Given the current intervention, that insinuates the currency is not stable. Domestically? Internationally? Where is "the currency" not stable?? For that matter, what does "stable" mean in the context of "the currency" in the time period of the now? Domestically the value is $1, inflation is tame, and the economy is north of flat by all measures. Does that suggest the issue is a shortage of "the currency" internationally? Is that what you mean by stabilizing? Does adding funds to the repo market address a shortage in international markets, bank to bank?

These type of articles are disingenuous... the entire balance sheet, 4.05T found it's way into pumping US financial markets, no other use or purpose!! I don't think so!!!

ironchef · Nov 22, 2019

nooby_mcnoob said:
The reason such a market cannot exist is because the plebs really don't see the market as worth their while. They will just buy a house, pay it off and then reverse mortgage it till they die. It's not a bad life.

gaussian said:
Paying off a house will only guarantee you a return equal to your mortgage rate. People will still put money into mutual funds.

Actually we plebs buy whole life insurance, guaranteed annuity... We like sure things.

nooby_mcnoob · Nov 22, 2019

ironchef said:
Actually we plebs buy whole life insurance, guaranteed annuity... We like sure things.

You're not a pleb.

gaussian said:
Paying off a house will only guarantee you a return equal to your mortgage rate. People will still put money into mutual funds.

Plebs won't make decisions on this basis. They do not have this level of financial literacy.

ironchef · Nov 22, 2019

nooby_mcnoob said:
You're not a pleb.

I am a pleb, a mom and pop amateur.

I am still trying to learn how to program excel VBA. I am quite sure you already know Python, R, C++....

Plebs won't make decisions on this basis. They do not have this level of financial literacy.

If we have any financial literacy we won't buy guaranteed annuity and whole life.

nooby_mcnoob · Nov 22, 2019

ironchef said:
I am a pleb, a mom and pop amateur.

I am still trying to learn how to program excel VBA. I am quite sure you already know Python, R, C++....

A pleb in this regard doesn't have any financial literacy. I just know Python and C++. I will neither confirm nor deny knowing VBA.

ironchef said:
If we have any financial literacy we won't buy guaranteed annuity and whole life.

I figured that was the sarcasm. I countered with the same sarcasm

S2007S · Nov 22, 2019

nooby_mcnoob said:
The reason such a market cannot exist is because the plebs really don't see the market as worth their while. They will just buy a house, pay it off and then reverse mortgage it till they die. It's not a bad life.

Stock market, art, wine, all these things are now playthings of the wealthy which they trade between each other trying to get one over on the other.

Art ...dont even mention it....I have watched certain pieces come back 2 or 3 or 4 times to auction only to skyrocket in price each and every time...its not at all about the look of the art, but just for the value and what the future return will be...if anyone actually believes they are buying a Rothko or picasso because of the way it appeals to them is just a joke. They buy these pieces only as an investment to flip them a decade later for many many multiple tens millions than what they paid.