Bold Moves, Tepid Gains
invite response
2016 Aug 25, 12:01pm 1,549 views 5 comments
by Rew ➕follow (0) 💰tip ignore
Comments 1 - 5 of 5 Search these comments
Rew
2016 Aug 25, 12:40pm
;)
I really wish the market was glowing today so I could post: "OMG! New highs reached!" alongside this. Ha.
NuttBoxer
2016 Aug 25, 1:04pm
Their move isn't bold as in new or innovative, it's bold as in extreme. We've never seen a fiat financial system leveraged to the extent we currently are, ever. Even banana republics were never able to keep the game going this long. Just remember, bankers don't exist to make your life better. They exist to make their lives better at your expense.
Rew
2016 Aug 25, 1:16pm
Their move isn't bold as in new or innovative, it's bold as in extreme.
It's less extreme to me, and more all they have the power to do in the face of the issue. It's kind of desperation, in a way. They are revving and revving that engine, hoping something will put the car in gear. They watch as the money continues to pool and stagnate, while main street continues to have less and less to spend.
Lending can only do so much.
NuttBoxer
2016 Aug 25, 1:30pm
And to be more accurate, when issuing new money in a fiat system, you must create debt through bond sales. So they aren't lenders in this case as much as they are debt creators. When has more debt ever fixed anything...
"WASHINGTON (AP) -- The world's key central banks have worked themselves into contortions to try to rev up economic growth, raise inflation and coax consumers and businesses to borrow and spend more.
They've pumped trillions into financial systems and driven interest rates about as low as they can go - even below zero in Europe and Japan. Yet after several years, the results are ... meh."
http://hosted.ap.org/dynamic/stories/U/US_CENTRAL_BANKS_LOW_RATES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2016-08-25-09-58-01
#LogansSwan