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Playing the Ponzi
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Why “Playing the Ponzi”? I view the entire monetary and financial system as something of a Ponzi scheme. Starting with currency that is created as debt, and running straight through a global economic model that is based on infinite growth in a finite world. This won’t end well. I’d go a step... More
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Playing the Ponzi
  • What Can We Expect From QE3? 0 comments
    Sep 12, 2012 4:40 PM | about stocks: TLT, TBT, TBF

    With QE3 possibly on deck, let's see how the last 3 years of QE have fared.

    Charts say it all.

    Treasuries first:

    (click to enlarge)

    Then stocks:

    (click to enlarge)

    The Bernanke claims QE is done to lower interest rates, but it has had exactly the opposite effect. This is a useful observation for two reasons:

    1) It confirms that asset prices (stocks, housing, "risk" assets) are the target, not lower Treasury yields. Saying "lower rates" is just something the mainstream media can glom onto as vaguely sensible logic.

    2) It confirms that Fed speak and Fed action are not at all the same thing. The Fed says whatever it thinks will serve its end goal, with truth as a routine casualty.

    Stocks: TLT, TBT, TBF
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