The Conservative Cave
Current Events => The DUmpster => Topic started by: SSG Snuggle Bunny on September 14, 2012, 03:16:13 PM
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Nye Bevan (7,613 posts)
Bernanke smacks down Romney, launches big stimulus until jobs rebound. Stocks soar.
The Federal Reserve launched another aggressive stimulus program on Thursday, saying it will buy $40 billion of mortgage debt per month and continue to purchase assets until the outlook for jobs improves substantially.
<snip>
http://www.reuters.com/article/2012/09/13/us-usa-fed-idUSBRE88C04T20120913
This is just what Romney was afraid would happen. Bear in mind that Romney has promised to replace Bernanke if he is elected.
Dow up 100+ points on the news.
http://www.democraticunderground.com/10021335777
And...
scheming daemons (20,405 posts)
Ben Bernanke just re-elected the President.
QE3, which will buy up mortgages and pull the housing market out of its depression, was just announced.
The Dow will be over 14000 by the end of next week.
By November, unemployment will be 7.9% or lower... a significant level emotionally
http://www.democraticunderground.com/10021336046
So, they're good and satisfied with the result.
They own it.
They wanted it.
They cheered it.
Remember that because they're about to change they're tune.
Egan-Jones downgrades U.S. rating on QE3 move
By Wallace Witkowski SAN FRANCISCO (MarketWatch) -- Egan-Jones Ratings Co. said Friday it downgraded its U.S. sovereign rating to AA- from AA on concerns that the Fed's new round of quantitative easing, or QE3, will hurt the U.S. economy. The ratings agency said the Fed's plan of buying $40 billion in mortgage-backed securities a month and keeping interest rates near zero does little to raise GDP, reduces the value of the dollar, and raises the price of commodities. "From 2006 to present, the US's debt to GDP rose from 66% to 104% and will probably rise to 110% a year from today under current circumstances; the annual budget deficit is 8%," Egan-Jones said in a note. "In comparison, Spain has a debt to GDP of 68.5% and an annual budget deficit of 8.5%."
http://www.marketwatch.com/story/egan-jones-downgrades-us-rating-on-qe3-move-2012-09-14
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Oil shot up over a $100/bbl. Expect higher oil prices and gas to go to $5/gallon and not just in leftist hell holes like kalifornia and illinois.
Teh Bernake pretty much handed the election to Romney but is so smart he does not know it.
To lurking DUchebags, if QE1 and QE2 did not produce the results that QE3 is supposed to produce why have a QE3? Teh Bernake just threw gas on the smoldering inflation fire.....and assured a Romney win. This is bitter sweet because QE3 will only bring pain and misery to average Americans for years, it will make sure that Wile B. Obama is kicked out in a landslide.
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Doesn't matter wheather it works or not, all they want is a quick 2 months long up tick in the numbers....and then to hell with an eternity of down ticks.
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Print more money,value of dollar drops.
Takes more dollars then to buy a commodity,price of commodity (oil) is now higher in the world market.
Price paid at the pump rises accordingly as does all items affected.
DUmbasses.
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Btw idiots,unlike you,businesses knows what the result will be and will not be hiring anyone. :bird:
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But but but Carl! Scheming Daemons says
The Dow will be over 14000 by the end of next week.
By November, unemployment will be 7.9% or lower...
::)
Whatever evidence does he have that predicts that? Food and fuel will skyrocket, leaving people with pennies in their pockets at the end of the week. Worthless pennies.
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Oil shot up over a $100/bbl. Expect higher oil prices and gas to go to $5/gallon and not just in leftist hell holes like kalifornia and illinois.
Teh Bernake pretty much handed the election to Romney but is so smart he does not know it.
To lurking DUchebags, if QE1 and QE2 did not produce the results that QE3 is supposed to produce those results? Teh Bernake just threw gas on the smoldering inflation fire.....and assured a Romney win. This is bitter sweet because QE3 will only bring pain and misery to average Americans for years, it will make sure that Wile B. Obama is kicked out in a landslide.
We're adrift now; that's my impression given all the news today.
We're going to be drifting for an aimless 52 more days, until an adult gets elected for the White House.
Barack Milhous just gave up on being a leader, and is now at sea himself.
It's very reminiscent of Russia a couple of months before the tsar abdicated in 1917, or Germany a couple of months before the kaiser abdicated in 1918.
Exact parallels.
Now it's important to be sure that it's the Democrats, liberals, and primitives who reap the whirlwind, and not decent and civilized people.
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But but but Carl! Scheming Daemons says
::)
Whatever evidence does he have that predicts that? Food and fuel will skyrocket, leaving people with pennies in their pockets at the end of the week. Worthless pennies.
Pennies won't be around much longer. Using the cheapest metals it already cost the government more than a penny to stamp them out.
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But but but Carl! Scheming Daemons says
::)
Whatever evidence does he have that predicts that? Food and fuel will skyrocket, leaving people with pennies in their pockets at the end of the week. Worthless pennies.
That doesn't matter NOW - all that does matter is getting the embassy strikes off of the front page. They can blame Romney for the obvious fail that QE3 will bring later.
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Print more money,value of dollar drops.
Takes more dollars then to buy a commodity,price of commodity (oil) is now higher in the world market.
Price paid at the pump rises accordingly as does all items affected.
DUmbasses.
Depends on how you look at it. If you price oil in gold, oil is the same price today as it was when SCOAMF started his reign of economic incompetence. If you price oil in euros, oil is the same price as it was yesterday. What teh bernake did yesterday to help SCOAMF when in NOvember was to **** everybody in America that has any savings at all. However, he mostly ****ed the seniors. As most seniors are white, he ****ed white seniors over the worst yesterday to help a black SCOAMF. To me, that is pretty GD racist.
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By November, unemployment will be 7.9% or lower... a significant level emotionally
Based on?
Printing another couple of trillion?
:rotf: :rotf: :rotf: :rotf:
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It's very reminiscent of Russia a couple of months before the tsar abdicated in 1917, or Germany a couple of months before the kaiser abdicated in 1918.
Exact parallels.
Historical trending arc narratives?
:-)
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Historical trending arc narratives?
:-)
Well, I suspect I'm better at drawing parallels than Vlada Mitty is, at least.
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I am a high school graduate from 30 years ago and not up on financial schemes but am I correct in my take on this program?
The government becomes the guaranteed purchaser of a mortgage as a last resort to encourage lending institutions to write them regardless of the solvency of the applicant.
This is kind of the basis for the boom/bust cycle of the dairy industry btw.
The idea is to reignite the housing market and thus encourage people to use their homes as money trees which in turn is hoped to pump money into the economy and spur growth.
It is assumed the resultant inflation from increasing the money supply will be offset by growth and the promise that wages will increase accordingly so it will be easier to pay back a loan today on inflated dollars of tomorrow.
This sounds good until all the parasitic losses that are the unintended consequences of inflation remove those dollars and the loan is in default.
BOOM!
If totally wrong in what is desired by this then please correct me so I am informed.
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The DUmmies are fools, they see this as something good when in reality we just dug ourselves deeper in the hole. :banghead:
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This hole we've dug is so deep now, how will we ever get out? Oh, I have an idea...let's dig DEEPER!
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Well, I suspect I'm better at drawing parallels than Vlada Mitty is, at least.
You are...
...but I am unsurpassed in arts of instigation and shit-stirring.
:-) :cheersmate:
This hole we've dug is so deep now, how will we ever get out? Oh, I have an idea...let's dig DEEPER!
Maybe that is how all our shovel ready jobs are going to China.
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Bernanke took a risk of screwing over savers by trying to stir investors. It didn't work with QE1 or QE2 and it's not going to work with QE3. Couple of the heavy hitters will make a few more dollars in the stock market while some of the little guys get squeezed out of the market but that's about it.
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I think this was the final payment to the people who helped elect this inept failure. Like the Clintons looting the White House on their way out.
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Bernanke took a risk of screwing over savers by trying to stir investors. It didn't work with QE1 or QE2 and it's not going to work with QE3. Couple of the heavy hitters will make a few more dollars in the stock market while some of the little guys get squeezed out of the market but that's about it.
I went to the local bank and took out money in two different transactions. Tomorrow, I will take out more. Monday even more. All under the reportable minimum. I am confident that on Tuesday the manager, whom I know as an acquaintance, will come and ask why. I could be wrong but having .05% interest on money means I would rather have it in my backyard.
The big question that I will be setting up a spread sheet on is my SEP and IRA. If I had taken the tax hit three years ago, I bet that with inflation it would be a draw to have it in bonds and CDs. I just can't put it in the market now when nothing, NOTHING in the market is tied to reality and only what people decide to print.
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Yeah, like the country doesn't already know what a failure QE1&2 were. Like this will help small business, the engine of the economy, have enough confidence to start hiring. If anything, this will cause them to cut back. And this is something Romney can effectively explain in the debates. It's never worked. It never will.
cindie
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Just a few thoughts on this insanity...
The Fed indicated that they are going to print $40B EVERY month ($480B/year). They will not stop until the unemployment rate is ~4-5%. Simple math says with the US population being ~312M that is $127 per month for every man, woman and child in the United States ($1528/year/person).
Guess what is priced in dollars? Just about every useful commodity is what. As the value of the dollar goes down the dollar price of all commodities are going to skyrocket. Can you say inflation?
Savers are taking it in the neck on this one - your savings today will be worth much less when you actually need them is several years. Debtors love it because they can pay accumulated dollar denominated debt with lower value dollars.
The Fed has not even started about talking about any kind of exit strategy to get out of this clusterf**k.
Welcome to post WW1 Germany - got any wheelbarrows handy?
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Just a few thoughts on this insanity...
The Fed indicated that they are going to print $40B EVERY month ($480B/year). They will not stop until the unemployment rate is ~4-5%. Simple math says with the US population being ~312M that is $127 per month for every man, woman and child in the United States ($1528/year/person).
Guess what is priced in dollars? Just about every useful commodity is what. As the value of the dollar goes down the dollar price of all commodities are going to skyrocket. Can you say inflation?
Savers are taking it in the neck on this one - your savings today will be worth much less when you actually need them is several years. Debtors love it because they can pay accumulated dollar denominated debt with lower value dollars.
The Fed has not even started about talking about any kind of exit strategy to get out of this clusterf**k.
Welcome to post WW1 Germany - got any wheelbarrows handy?
Clear rational thinking like that will never get you on the FOMC or democrat party elite. Now repeat after me, 1+1= POTATO.
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'Soaring' is kind of an astounding overstatement. Stock prices will go up, some, but it's really just a form of price inflation, since the dollars they're priced in are now worth less than they were. It won't move the needle on U3 or U6 unemployment either way. That money isn't going to get any businesses to hire anyone until business managers know what's going to happen to tax rates, and who the next President is going to be.
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I went to the local bank and took out money in two different transactions. Tomorrow, I will take out more. Monday even more. All under the reportable minimum. I am confident that on Tuesday the manager, whom I know as an acquaintance, will come and ask why. I could be wrong but having .05% interest on money means I would rather have it in my backyard.
The big question that I will be setting up a spread sheet on is my SEP and IRA. If I had taken the tax hit three years ago, I bet that with inflation it would be a draw to have it in bonds and CDs. I just can't put it in the market now when nothing, NOTHING in the market is tied to reality and only what people decide to print.
Don't touch SEP's or IRA's that's just self inflicted damage. The savers taking the hit are pass book savings and money market acct's. Short term liquidity accts. Retirement accts may take a hit depending upon the Investment groups , spreads and strategies but have time to regain loses in the future. Anyone within 3 - 5 yrs from retirement should be in low/no risk investments with the purpose of capital preservation.
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Don't touch SEP's or IRA's that's just self inflicted damage. The savers taking the hit are pass book savings and money market acct's. Short term liquidity accts. Retirement accts may take a hit depending upon the Investment groups , spreads and strategies but have time to regain loses in the future. Anyone within 3 - 5 yrs from retirement should be in low/no risk investments with the purpose of capital preservation.
I can see this as the market rises but I am planning on having to watch the market like a hawk and try to convert back to cash when the music stops...
I agree that the people taking the hit are passbooks and money markets. However, I would add bonds to this. In my case I did college for my kids as a laddered set of zero coupon t-bill strips. The plan was that I would have a bond come due in August of every year. Until now I was ok because when I set them up I calculated the inflation rate of in-state tuition and planned to have that much money available each year. The self-induced inflation is going to really screw up my well laid plans for my kids...
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I can see this as the market rises but I am planning on having to watch the market like a hawk and try to convert back to cash when the music stops...
I agree that the people taking the hit are passbooks and money markets. However, I would add bonds to this. In my case I did college for my kids as a laddered set of zero coupon t-bill strips. The plan was that I would have a bond come due in August of every year. Until now I was ok because when I set them up I calculated the inflation rate of in-state tuition and planned to have that much money available each year. The self-induced inflation is going to really screw up my well laid plans for my kids...
I don't follow what you are saying. Granted I'm not an Investment Guru. Aren't zero coupon & coupon Bonds two different types of Bonds. Zero coupons being sold at a discounted price below face value with no periodic interest payments (the coupon) in regular bonds. Stripping is the separating of coupons from the principal of coupon bonds by Investment bankers/dealers creating a new supply of zero coupon bonds.
Regardless stocks and bonds are somewhat of opposing market forces in that when the one market is appreciating the other is depreciating . Dollar cost averaging with a greater amt going into the leader at the time of Investment might negate any loses in the long haul. naturally the closer it gets to the time the funds are needed the more conservative/less risk your investment strategy should become.
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Chase called me the other day to try to get us to switch our checking and money market account to them (we use BofA, no lectures please). The huge bonus they would give us for moving all of our money...$100. :rotf: It would cost me more time changing all of my auto payments I have set up through my online banking account, a $100 wouldn't even start to make it worthwhile for me. They can't give us any more interest on our accounts than BofA, why would they think $100 would make me jump at the offer?
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I don't follow what you are saying. Granted I'm not an Investment Guru. Aren't zero coupon & coupon Bonds two different types of Bonds. Zero coupons being sold at a discounted price below face value with no periodic interest payments (the coupon) in regular bonds. Stripping is the separating of coupons from the principal of coupon bonds by Investment bankers/dealers creating a new supply of zero coupon bonds.
The lady that I work with calls them zero coupon strips so that is the term that I used. They are what you described as a zero coupon. I did buy them at a discount from face and I pay taxes on "shadow interest" every year. I get a 1099-OID with the yearly interest but don't actaully get the cash that year. When they mature I get the face value of the bond but I still have to pay taxes on the interest for the final 9 months.
I used some tools to try to predict college costs based on in-state tuition and when the kids would graduate from HS. Once I had that number I then purchased a bond with that face value (at a discount) for each year of college. The plan is that when each college year comes around I would be able to cash in that year's bond as it matured and then pay the college bills.
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Chase called me the other day to try to get us to switch our checking and money market account to them (we use BofA, no lectures please). The huge bonus they would give us for moving all of our money...$100. :rotf: It would cost me more time changing all of my auto payments I have set up through my online banking account, a $100 wouldn't even start to make it worthwhile for me. They can't give us any more interest on our accounts than BofA, why would they think $100 would make me jump at the offer?
Who would lecture you about who to bank with? This isn't DU. :-)
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When inflation hits -- and it will hit -- it's gonna hit hard. The primitives will be screaming them. There's not a single one of them on the island who know how to invest in order to beat inflation during those times. Not a single one knows how, they're all financial idiots.
But oh, the stories they'll have for us to read. And of course, as we all know in advance, it'll all be the Republicans fault, they'll have to include that. But still, the stories...
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