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The size of the correction will depend on whether the Fed will taper or not. In any case I expect much more volatility in 2014.
The size of the correction will depend on whether the Fed will taper or not. In any case I expect much more volatility in 2014.
Everyday the same question in the financial stories.....will they taper? If when, how much?.....blah blah blah. This is perpetuated nonsense.
Strategist
2013 Dec 13, 1:51am
The size of the correction will depend on whether the Fed will taper or not. In any case I expect much more volatility in 2014.
Everyday the same question in the financial stories.....will they taper? If when, how much?.....blah blah blah. This is perpetuated nonsense.
Yes, agreed it is nonsense, until people start losing money in their 401Ks and brokerage accounts. Then it becomes real and we are back to thinking about ways to really fix the economy rather than just increasing the money supply. The real problem never got addressed yet.
What is the real problem and how would you fix it?
Strategist
2013 Dec 13, 2:20am
What is the real problem and how would you fix it?
If I had the power of decision I would immediately reduce everyones public retirement to match what we can afford to pay. Whoever doesn't like this can just fuck off. ;)
I agree. Everyone wants more because they think they deserve it, but who deserves to pay for it?
tatupu70
2013 Dec 16, 2:08am
If I had the power of decision I would immediately reduce everyones public retirement to match what we can afford to pay. Whoever doesn't like this can just fuck off. ;)
I think we should reduce your salary by 50%. If you don't like it, you can just fuck off. ;)
rooemoore
2013 Dec 16, 4:28am
All you do around here is predict things will rise over and over, so you are one to talk.
Truth be told, ever since he's predicted things to rise, they've risen. Saying that it is because of the fed leads to an obvious question. Since QE2 hasn't been a secret, why didn't you factor it into your prediction for the housing market? You predicted declines despite the fed's actions. Now that your prediction is wrong you can't go back and blame something that you knew was happening. So you underestimated the fed's influence. That still means you got it wrong.
Now that the fed will probably start tapering, perhaps your predictions will come true.
Strategist
2013 Dec 18, 5:28am
Home builders going through the roof.
Until people realize that their new home's roof is made from shabby construction. Keep pumping up your assets. You will need the memory of the good times as you suffer through the reality to come.
The Federal Reserve pretty much guarantees a housing recovery. Don't fight it, just jump in and make money.
Strategist
2013 Dec 18, 5:41am
I've been in and out of positions quicker than you can pump on here.
Sounds like an orgasm.
Why is a correction in order when the rules of the game are set by the Fed? Simple mantra on Wall Street....don't fight the fed.
Why is a correction in order when the rules of the game are set by the Fed? Simple mantra on Wall Street....don't fight the fed.
Because the market is bigger than even the Fed.
Why is a correction in order when the rules of the game are set by the Fed? Simple mantra on Wall Street....don't fight the fed.
Because the market is bigger than even the Fed.
Perhaps the lines are blurred between what is the Fed and what is the market. Could they be one in the same?
In my view there is not going to be a correction either in housing or stocks. Earlier I used to think to the contrary but I have recently changed my position on it.
I think the stock and housing markets are simply responding to inflation. Those that have been holding cash are the losers. Those that invested in homes and stocks have gained and will continue to do so as the fed prints money like it is going out of style.
Given that the Fed reduced MBS purchases by just $5 billion after so many meetings means that they will continue to pump ridiculous amounts of cash each year into the housing market for a very long time.
Yes, eventually there will be apocalypse when the Fed's balance sheet reaches gazillion dollars but that may take a decade or more...
Strategist
2013 Dec 19, 10:10am
If it wasn't for the Fed selling our souls you would be wrong on everyone of your predictions so far
"If you hadn't been right, you would have been so wrong. Take that, asshole!"
My point being no one on here predicted that the Fed would be throwing 85B/mth at the rich in this country to arguable save the poor. No one.
We know they are continuing with 75billion/month.
The fed is guaranteeing a housing recovery. They have the means to do so.
Just imagine, the US government guaranteeing your investment will make money. They are handing success to you on a silver platter. How can anyone ignore that?
If it wasn't for the Fed selling our souls you would be wrong on everyone of your predictions so far
"If you hadn't been right, you would have been so wrong. Take that, asshole!"
My point being no one on here predicted that the Fed would be throwing 85B/mth at the rich in this country to arguable save the poor. No one.
That's debatable. Ive gone on record as noting that (once TPTB recognized the liquidity crisis as a threat to the status quo) anything short of rolling the tanks would have been on the table. Remember when the Ted spread and a1/p2 spreads were blowing out? Remember when we broke the fucking buck for Christ sakes?
To be honest, I sometimes look back and remark at how incredibly "cheap" it was to get out of all that mess and kick the can as far as we have. The vast majority of empires over the centuries would have done anything to get off as relatively scott free as we did.
We know they are continuing with 75billion/month.
The fed is guaranteeing
a housing recovery. They have the means to do so.
Just imagine, the US
government guaranteeing your investment will make money. They are handing
success to you on a silver platter. How can anyone ignore that?
Agreed, if you have not been investing in the stock market during this QE gift then you are probably not a very savvy investor. I am not an expert in real estate investing, however it sure seems easier to trade stocks behind a keyboard to me.
Has the Fed ever explained what is the short/long term impact of the 4T dollar balance sheet they have created? Or should we just assume 'they have our backs'?
Youbetcha. Ya don't gotta like it to exploit it. I never understood those who
stand aside simply out of moral indignation.
Moral indignation? Come on now that is a thing of the past, start getting current with the times. It is everyone for themselves to one up the other and secure their future by any means needed.
Just watch what happens as we go through a much needed stock market correction. My hunch is it will lead to a spike in housing inventory. It is always amazing to me how people react when they are losing money, verses when they are making money. Fear is the greatest equilibrium in a capitalist society.
#housing