Comments 1 - 24 of 24 Search these comments
Get it?
clambo saysGet it?
You forgot the point about how creating 3 trillion out of thin air in one month is only done in stable economies where your stock positions will rise to infinity!!!
Plus the economy under Trump is really booming otherwsie we wouldnt have had such an extended bull run.
mell saysPlus the economy under Trump is really booming otherwsie we wouldnt have had such an extended bull run.
Lol !!
Thanks NuttBoxer.
Under Obummer only the Fed was pumping.
mell saysUnder Obummer only the Fed was pumping.
Deficits were decreasing under Obama.
Stock market up has little to do with anything Trump has done.
alse. Trump cut red tape like no one else that's why UE is at record low and business activity at record high
TRumps massive tax cuts are the difference
So what is your investment strategy? Or you are just annoyed about the 3 Trillion?
The thing is that it's incredibly hard to time when the house will come crashing down.
nd don't hedge on the current value of assets like housing/land, or you will be very short.
Even gold/silver is not buying much necessities during times of extreme duress.
Depends on what you consider to be real money. History says it's always been gold and silver, and I doubt that's changing anytime soon.
So...logically what you want in crisis times is YAMS! which you sell to the rest of population for inflated price
My late relatives, who lived through WW1 and WW2 in Europe said that even value of gold and silver crashed during those years. For example, if in 1939 one could by a ton of potatoes for x grams of gold, then in 1943 it was may be 1/3 ton for the same amount of gold.
Here's what gold and silver typically do in a financial crisis:
So you can watch people spend every last penny they have on a few yams while you are stacking assets and feeling proud of yourself.
"But I haven’t paid close enough attention to HOW MUCH money the Fed has been pumping in. Pam and Russ Martens’ “Wall Street on Parade” is generally very reliable with facts. In their November 18, November 19, and November 22 columns they stated that the New York Fed has pumped $3 trillion (Gag! Gag!) to the trading houses on Wall Street since September 17, 2019. In the November 18 Column they cite James Grant, editor of Grant’s Interest Rate Observer, saying the Fed has pumped “upwards of $3 trillion” in repo loans. It doesn’t get more reliable than James Grant.
Be still, our your hand over your mouth, and wonder. First, three trillion dollars is a massive creation of money. Gargantuan. Mammoth. Colossal. Brobdingnagian. Not even the Fed, in all its shabby glory, can sterilize that amount easily.
Providentially as I was writing this an old friend called who has forgotten more about markets & trading that ten people will ever know. I asked him about the repo market and he said, there is nothing to compare to it in monetary history. There is no equivalent since January 1980 when the Fed Funds rate, which had averaged 1.5% to 3% during the 1970, shot to 21%. No other comparison. Think back on that time. The great silver spike threatened to bring down huge investment houses, and that was right before Paul Volcker took over the Fed and had to screw interest rates up over 20%. I am not saying the same things will happen this time — they won’t, that was another crisis another time — only that the repo market turmoil is signaling some monstrous blowup coming.
Second, the S&P500 chart since September shows that, whether these infusions are called Quantitive Easing or not, they have the selfsame effect on the stock market. Since September 17 the S&P500 has risen 3.9%.
Finally, think of the implications: were there not a huge need among the banks and financial markets, on the scale of 2008, would the Fed be pumping in $3 trillion? What is that problem? How soon will it explode? While the whole bond market, warped and twisted by negative interest rates, blow up in smithereens?"
-Franklin Sanders