Home Politics

Fed ends QE - it's the end of the world!

nuevowavonuevowavo Posts: 6,788 Admin
The Fed announced the ending of the QE3 bond buying program yesterday.
The stock markets plunged, inflation soared and the dollar crumbled as gold reached new highs, at least in the fantasy world where political dogma trumps reality.
Federales, bring my baby back to me!

Replies

  • cprcpr Posts: 9,309 Admiral
    About time.
    "The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function." F. Scott Fitzgerald

    "Prediction is very difficult, especially if it's about the future." Niels Bohr
  • phlatsphilphlatsphil Posts: 14,632 AG
    The DOW, which fell to the low 16,000s over the past few weeks, is back up over 17,000 at this moment.

    But don't ask me what it means.
  • rickcrickc Posts: 9,172 Admiral
    So now the Federal Reserve owns all the subprime mortage backed securities that are worth nothing. Gave the banks and wall street 4 trillion dollars for them.

    How is that going to work out?
  • Lobstercatcher229Lobstercatcher229 Posts: 4,845 Captain
    I am happy to see the end of QE. Hopefully with some combination of spending reductions (or reductions in the rate of increase of spending) and taxes we can work towards decreasing all this debt that we have!
  • mikevmikev Posts: 10,822 AG
    I wish gold would get back down to around $800. I'd buy a bit of it.
    "The only people that tell you it can't be done are the people who haven't done it themselves."
  • bswivbswiv Posts: 7,669 Admiral
    I don't know how in the world it can be that progressives/modern liberals hate the bailouts and the corporatism that they in general represent when the EXACT same positions are held by the various iterations of the Tea Party?

    I mean if the Tea Party believes it it must be wrong, or racist, or something like that........?????

    As to your original sarcastic post.......I got so excited when I saw the leader on the forum that the first thing I did was open a window to Bloomberg.......and then I realized you were playing and all the air went out.
  • Lobstercatcher229Lobstercatcher229 Posts: 4,845 Captain
    bswiv wrote: »
    I don't know how in the world it can be that progressives/modern liberals hate the bailouts and the corporatism that they in general represent when the EXACT same positions are held by the various iterations of the Tea Party?

    I mean if the Tea Party believes it it must be wrong, or racist, or something like that........?????

    As to your original sarcastic post.......I got so excited when I saw the leader on the forum that the first thing I did was open a window to Bloomberg.......and then I realized you were playing and all the air went out.

    I find it interesting that some folks such as Ron Paul and other conservatives have some similar positions to some of the liberals of the world.
  • nuevowavonuevowavo Posts: 6,788 Admin
    bswiv wrote: »

    As to your original sarcastic post.......I got so excited when I saw the leader on the forum that the first thing I did was open a window to Bloomberg.......and then I realized you were playing and all the air went out.

    So you were hoping that the markets and the economy were going down the tubes as a result of QE's completion?
    Federales, bring my baby back to me!
  • phlatsphilphlatsphil Posts: 14,632 AG
    bswiv wrote: »
    I don't know how in the world it can be that progressives/modern liberals hate the bailouts and the corporatism that they in general represent when the EXACT same positions are held by the various iterations of the Tea Party?

    I mean if the Tea Party believes it it must be wrong, or racist, or something like that........?????

    As to your original sarcastic post.......I got so excited when I saw the leader on the forum that the first thing I did was open a window to Bloomberg.......and then I realized you were playing and all the air went out.
    nuevowavo wrote: »
    So you were hoping that the markets and the economy were going down the tubes as a result of QE's completion?

    bswiv must be big into short sales.... :grin
  • cprcpr Posts: 9,309 Admiral
    nuevowavo wrote: »
    So you were hoping that the markets and the economy were going down the tubes as a result of QE's completion?

    How could it crash? Wall St. is awash in digital dollars. The market is the only way they can launder the federal funny money.
    "The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function." F. Scott Fitzgerald

    "Prediction is very difficult, especially if it's about the future." Niels Bohr
  • bswivbswiv Posts: 7,669 Admiral
    phlatsphil wrote: »
    bswiv must be big into short sales.... :grin

    BSWIV is into trees......and does not trust the people running WS.

    Michael Lewis........"The Big Short"......really turns your guts into a knot.
  • bswivbswiv Posts: 7,669 Admiral
    nuevowavo wrote: »
    So you were hoping that the markets and the economy were going down the tubes as a result of QE's completion?

    I'm not sure there is a "absolute" connection between all the "markets" and the economy.

    And I do have to wonder.....chicken or egg?
  • rickcrickc Posts: 9,172 Admiral
    bswiv wrote: »
    I'm not sure there is a "absolute" connection between all the "markets" and the economy.

    And I do have to wonder.....chicken or egg?


    There is a complete disconnect between wall street and the real economy.

    first they are awash in 4 trillion dollars of fed money.

    Wall Street is vegas for hedge funds and whales. Deriviatives, commodities, you name it, in fact they keep coming up with new ones all the time. Gambling with enough money to move markets. and the feds are afraid to investigate the frauds and prosecute the guilty

    next the ones that are actually investing are investing in emerging markets not the American economy. That is why when China dips the stock market falters.
  • NewberryJeffNewberryJeff Posts: 7,447 Admiral
    nuevowavo wrote: »
    So you were hoping that the markets and the economy were going down the tubes as a result of QE's completion?

    It may get more difficult for corporations to keep the market inflated by buying back their own shares/acquiring other companies with money borrowed from the Fed dumping.
  • nuevowavonuevowavo Posts: 6,788 Admin
    It may get more difficult for corporations to keep the market inflated by buying back their own shares/acquiring other companies with money borrowed from the Fed dumping.

    You really don't pay attention to little things like "profits", do you?
    And the Fed has ended QE, as stated in my OP.
    Federales, bring my baby back to me!
  • gunby31gunby31 Posts: 5,777 Officer
    nuevowavo wrote: »
    You really don't pay attention to little things like "profits", do you?
    And the Fed has ended QE, as stated in my OP.

    The obama haters have to now throw different s*** againt the wall and hope it sticks since their QE argument is a proven FAIL.
  • NewberryJeffNewberryJeff Posts: 7,447 Admiral
    nuevowavo wrote: »
    You really don't pay attention to little things like "profits", do you?
    And the Fed has ended QE, as stated in my OP.

    I don't believe the doomsday predictions either, which is why I said, "It may."
    Ending the unprecedented Fed expansion will have no effect?
  • Big BatteryBig Battery Posts: 20,040 AG
    nuevowavo wrote: »
    You really don't pay attention to little things like "profits", do you?
    And the Fed has ended QE, as stated in my OP.
    Profit is connected to buybacks.
  • nuevowavonuevowavo Posts: 6,788 Admin
    Profit is connected to buybacks.

    Yes. If a company spends money to buy its own stock, that's an expense that will decrease profits.
    It may, however, increase its stock price.
    Federales, bring my baby back to me!
  • Big BatteryBig Battery Posts: 20,040 AG
    It will increase its profits...it borrows the money to buy the stocks.
  • nuevowavonuevowavo Posts: 6,788 Admin
    It will increase its profits...it borrows the money to buy the stocks.

    How does borrowing money or buying stock increase profits?
    Federales, bring my baby back to me!
  • Big BatteryBig Battery Posts: 20,040 AG
    Borrowing isn't a direct expense and reducing shares increases profit. How is profit measured?
  • navigator2navigator2 Posts: 22,504 AG
    Borrowing isn't a direct expense and reducing shares increases profit. How is profit measured?

    It doesn't increase profit. It increases earnings per share. I doubt a WS analyst would buy into borrowing to buy back stock as a viable way to boost EPS. You haven't helped your debt to earnings ratios. More often than not companies will buy their stock back with idle cash that is sitting on the sidelines rather than expand or pay dividends. Continued expansion at some point has diminishing returns.
    [SIGPIC][/SIGPIC]
Sign In or Register to comment.