No inflation??? HAHAHA Tons of it in the stock market

[ShootSpeeders]

And that was Bernanke's plan. He gave trillions of dollars to the bankers and told them he was gonna goose the stock market so put it all there. That's why the money he gave them isn't getting out into the economy. Pretty soon he'll give the bankers another tip (if he hasn't already) that he's gonna bring down stocks and the bankers will make another fortune on the short side.

 

[EdwardBaiamonte]

And that was Bernanke's plan. He gave trillions of dollars to the bankers and told them he was gonna goose the stock market so put it all there.

I have not seen evidence that banks are heavily invested in stock market?? It seems the billions he gave to banks is mostly held in reserve at the Fed because the Obama economy is so bad they have no place to invest it.

 

[Staidhup]

First, where do people come up with all this conspiracy nonsense? Inflation, it hasn't gone away, look at fed adjustments (manipulation), like whats counted and whats not. As for a pending bubble in the stock market? There indeed may be a bubble in play, however, with the current liquidity and low fixed debt securities market, bond and CD yields, coupled with the decrease in purchasing power of the dollar, it makes no sense other than to invest it in the stock market in hopes of exceeding this so called non-inflationary environment. Talk about the next big short, look at medium and long term bond market, if the fed releases the flood gates, interest rates escalate, CD, T Bill and Bond valuations will plummet. Ah, the heck with reality, blame the banks, or better yet Bush, oh, but he hasn't been President for 5 years and Barney and company cured all the evils of the market place. Ed, your spot on as it regards banks and the stock market.

 

[EdwardBaiamonte]

First, where do people come up with all this conspiracy nonsense?

I think when liberals can't figure something out they invent an answer rather than admit to themselves it was a problem way over their heads

 

[OnePercenter]

Hate to blow your 'bubble', but the current run-up in the market is being caused by big business parking tens of trillions. Holding accounts cost money now!

 

[william the wie]

Hate to blow your 'bubble', but the current run-up in the market is being caused by big business parking tens of trillions. Holding accounts cost money now!

Buy-backs and private equity firms are decreasing supply; cheap margin rates, hot money and momentum indicators are increasing demand. The Minsky moment is not predictable but it is coming down the pike with these classic bubble elements.

 

[Mr. H.]

First, where do people come up with all this conspiracy nonsense? Inflation, it hasn't gone away, look at fed adjustments (manipulation), like whats counted and whats not. As for a pending bubble in the stock market? There indeed may be a bubble in play, however, with the current liquidity and low fixed debt securities market, bond and CD yields, coupled with the decrease in purchasing power of the dollar, it makes no sense other than to invest it in the stock market in hopes of exceeding this so called non-inflationary environment. Talk about the next big short, look at medium and long term bond market, if the fed releases the flood gates, interest rates escalate, CD, T Bill and Bond valuations will plummet. Ah, the heck with reality, blame the banks, or better yet Bush, oh, but he hasn't been President for 5 years and Barney and company cured all the evils of the market place. Ed, your spot on as it regards banks and the stock market.

... unclear on the concept.

 

[AmazonTania]

I have not seen evidence that banks are heavily invested in stock market?? It seems the billions he gave to banks is mostly held in reserve at the Fed because the Obama economy is so bad they have no place to invest it.

Actually, the Federal Reserve is effectively paying banks not to make loans or other investments. Section 128 of the Emergency Economic Stabilization act allows US banks to collect interest on the money banks store at the Fed, instead of keeping it in reserves for capital investments.

But yeah, your scenario is just as good as any. Let's go with that...

 

[OnePercenter]

Hate to blow your 'bubble', but the current run-up in the market is being caused by big business parking tens of trillions. Holding accounts cost money now!

Buy-backs and private equity firms are decreasing supply; cheap margin rates, hot money and momentum indicators are increasing demand. The Minsky moment is not predictable but it is coming down the pike with these classic bubble elements.

Minsky moment? Everyone I'm speaking with says it's hard money being dumped.

 

[ShootSpeeders]

I have not seen evidence that banks are heavily invested in stock market?? It seems the billions he gave to banks is mostly held in reserve at the Fed because the Obama economy is so bad they have no place to invest it.

It's not billions, it's TRILLIONS. And the evidence is the way the stock market keeps rising.

 

[william the wie]

Hate to blow your 'bubble', but the current run-up in the market is being caused by big business parking tens of trillions. Holding accounts cost money now!

Buy-backs and private equity firms are decreasing supply; cheap margin rates, hot money and momentum indicators are increasing demand. The Minsky moment is not predictable but it is coming down the pike with these classic bubble elements.

Minsky moment? Everyone I'm speaking with says it's hard money being dumped.

Like the 100 tons of gold India has bought since the correction?

 

[OnePercenter]

Buy-backs and private equity firms are decreasing supply; cheap margin rates, hot money and momentum indicators are increasing demand. The Minsky moment is not predictable but it is coming down the pike with these classic bubble elements.

Minsky moment? Everyone I'm speaking with says it's hard money being dumped.

Like the 100 tons of gold India has bought since the correction?

India can do whatever they want. The only reason for the gold surge was to make up losses in the dot com crash. Gold is done.

 

[EdwardBaiamonte]

Minsky moment? Everyone I'm speaking with says it's hard money being dumped.

Like the 100 tons of gold India has bought since the correction?

India can do whatever they want. The only reason for the gold surge was to make up losses in the dot com crash. Gold is done.

gold is the people's currency, it will never be done as long as easy money liberals govern the earth. India is gold crazy but more for personal use than as a hedge against liberal government.

 

[JimmieD]

gold is the people's currency, it will never be done as long as easy money liberals govern the earth.

Why can't I buy my groceries with a gold coin or two?

 

[JimmieD]

I was looking through several bank balance sheets over the past several weeks since their P/B and P/E ratios were so low. It seems most of them are holding various types of loans (mostly MBS'), bonds (mostly t-bills), derivative contracts (mostly swaps), and plently of reserves with the Fed. I see little to no stocks on their books.

 

[Dugdale_Jukes]

Newsflash: In the 1980s ReagaNUTs deliberately moved the US economy from an industrial base toward an asset base.

Asset inflation started in the 1980s with securities (LBOs anyone) then moved into art, sports paychecks, government contracts, thenin the 1990s asset inflation expanded into housing, trinkets and finally commercial real estate.

The key to Keynesian corporate welfare (moron version: supply side) economics is debt-fueled spending. Before Reagan debt was something to be wary of, even ashamed of. After that cocksucker debt was honorable, a good thing described as "other people's money" with a knowing wink.

In large part asset inflation replaced commodities inflation throughout the 1990s (oil was in the $20-30bbl range any number of times in the 1990s). It wasn't until Clinton fired Brooksley Born and signed the CFTMA that asset inflation exploded into commodities futures markets.

We are living the natural end to an asset based economy. As this is being clicked out corporations and policy makers are scrambling to figure out how to bring more heavy manufacturing back to the USA.

If they don't, you are living the future.

 

[EdwardBaiamonte]

how to bring more heavy manufacturing back to the USA.

Simple and Republican:

1) make unions illegal again since they drove around 30 million jobs offshore

2) make corporate taxes lowest in world rather than highest so there is incentive to do business here rather than off shore

3) make deficits illegal so Chinese and Japanese and will buy our products rather than our deficits

4) learn what supply side economics is!!

 

[Dugdale_Jukes]

how to bring more heavy manufacturing back to the USA.

Simple and Republican:

1) make unions illegal again since they drove around 30 million jobs offshore

2) make corporate taxes lowest in world rather than highest so there is incentive to do business here rather than off shore

3) make deficits illegal so Chinese and Japanese and will buy our products rather than our deficits

4) learn what supply side economics is!!

You're getting there, Eduoard. You're getting there.

Only three point five wrong on that list.

Not bad for your team.

 

[EdwardBaiamonte]

how to bring more heavy manufacturing back to the USA.

Simple and Republican:

1) make unions illegal again since they drove around 30 million jobs offshore

2) make corporate taxes lowest in world rather than highest so there is incentive to do business here rather than off shore

3) make deficits illegal so Chinese and Japanese and will buy our products rather than our deficits

4) learn what supply side economics is!!

You're getting there, Eduoard. You're getting there.

Only three point five wrong on that list.

Not bad for your team.

can you say why they are wrong or must you admit as a liberal you lack the IQ to do so?

 

[william the wie]

Given advances in robotics increasing the manufacturing base will have negligible effects on employment.