Seeking Alpha

Bernanke: Taper and rate hikes two very different things

  • "The FOMC’s decision to modestly reduce the pace of asset purchases at its December meeting did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed," says Ben Bernanke in what could be termed his farewell speech.
  • "The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for U.S. economic growth in coming quarters ... But, of course, if the experience of the past few years teaches us anything, it is that we should be cautious in our forecasts.” Indeed.
Comments (54)
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    Translation-----------...

     

    We got a lot more pain to inflict on what used to be the middle class in America, and secondly, our banker owners insist on a lot more free money.

     

    As for "we should be cautious in our forecasts"; he means that they can't forecast worth a damn and have been miserably wrong in the past but they'll continue their failed policies anyway.
    3 Jan 2014, 02:57 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1202) | Send Message
     
    Could we stop with this stupid lie. The accomodative monetary policy combined with the low inflation has been very good to the middle class. If you want to know what would have happened with no QE and tighter policy just take one look at Europe. The middle class cares much more about jobs than interest rates, and QE has been able to stem the job losses and cause some steady gains in employment. The middle class is definitely better now than they were at the debts of the 2009 crisis.
    3 Jan 2014, 04:02 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    Philip
    You are wrong. The "it could have been worse" story is totally unprovable . Meanwhile the only beneficiaries of QE are people who own stocks and that is not the middle class.
    3 Jan 2014, 04:05 PM Reply Like
  • MEKhoury
    , contributor
    Comments (293) | Send Message
     
    Conversely, and to be fair, the "it could have been better" story is also, as you say, unprovable. That is, unless you care to cite a situation somewhere?
    3 Jan 2014, 04:09 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (3434) | Send Message
     
    wyostocks, the other beneficiaries were the banks who are now sitting on $2.3 trillion of cash the Fed thought they might loan out.

     

    Not so much...

     

    Good translation!
    3 Jan 2014, 07:20 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11528) | Send Message
     
    Bernanke escaped the ramifications of his easy money policy just like Greenspan did. What's on tap now, another meltdown and easier money policies? We're getting to the point where this little game is becoming a bit absurd. There hasn't been real non-easy money induced growth since ClInton and Bush Senior who set the stage for growth through fiscal discipline, not an orgy of easy money and regulatory changes that put all America in jeopardy to bankers when they ended Glass-Stegall and supported NINJA loans as a proxy for defrauding the taxpayer and the poor out of their money through Fannie Mae and Freddie Mac, mortgage backed derivatives, and MBS.
    3 Jan 2014, 08:38 PM Reply Like
  • whosez
    , contributor
    Comments (112) | Send Message
     
    Are there steady gains in employment if you count the masses of people who have fallen off the goverment's reports? If you count them, we are lagging way behind the level of employment we have reached after any other recession. I know a lot of (mostly educated) people who have lost homes, jobs, and drained their retirement accounts to get by who would disagree that they are better off now. They don't give a hoot about QE or the tripling of the stock market because they have no money to invest. There are an awful lot of folks inbetween the poverty line and the super high net worth crowd, and that seems to be the new "middle class" these days. I'm not saying you're wrong about QE; I really don't know. I guess anything is better than the whole system imploding. But job creation since 2009 has been slow as molasses, and between that, uncontrolled health care costs, and huge numbers of people heading into their golden years totally broke, the whole works might still implode in the not-so-distant future. My two cents.
    3 Jan 2014, 10:48 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1202) | Send Message
     
    When I say gains in employment I mean gains in the number of jobs. The total number of jobs has been steadily increasing since the trough of 2009/ early 2010. [1] I completely agree with you that the unemployment rate is still pretty bad and much worse than what the official statistics would have us believe. But that does not change the fact that QE has brought us a steady increase of jobs. Again, you can compare the situation with that of continental europe that did not really have QE. Or better yet compare England which did have QE with continental Europe which did not.

     

    [1]: http://bit.ly/1awdgiu
    4 Jan 2014, 10:55 AM Reply Like
  • EK1949
    , contributor
    Comments (1667) | Send Message
     
    The course of the U.S. and the Eurozone is the proof. Half bad policy beats all bad policy. There no place to hide if you're an austerian. Austerians engineered a '30s level depression in Europe while Bernanke, acting with a huge headwind from fiscal sabotage managed to pull us into a recovery in spite of ourselves. He deserves credit for much of the good that has happened and almost none of the bad. Under the circumstances he performed superbly. His critics will be engaging in "I never said that" and "I didn't mean that" for the rest of their lives. Unfortunately they will still have influence to the extent money can buy it. Being wrong exacts a shockingly small toll on reputations propped up by the likes of Pete Peterson. No one loses his job for being wrong in that crowd.
    4 Jan 2014, 07:16 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (3434) | Send Message
     
    That's all true EK, except for;

     

    The Fed's Balance Sheet.
    The $17.2 Trillion of National Debt
    The Budget Deficit increasing $1 Trillion a Year
    The Unfunded Liabilities
    The $5 Trillion Plus of Sub-Investment Derivatives held by the nations top 5 banks coming due in the next 5 years
    The $85 Billion of QE Every Month (Soon to be $75 Billion)
    The Odds of Higher Interest Rates
    The Effects of Higher Interest Rates
    The Money Velocity Increasing as $2.3 Trillion Comes into the Market
    The Fact that Greenspan's Bubble didn't come to fruition until After he left
    The Pension Guaranty Associations Deficit
    The FDIC's Deficit

     

    Anyone care to add?

     

    Anyone got insurance?
    4 Jan 2014, 07:24 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1604) | Send Message
     
    @PM - "The accomodative monetary policy combined with the low inflation has been very good to the middle class" - not true, see this link, which is by McKinsey and shows banks have profited from QE at the cost of savers: http://bit.ly/1gtkPeR
    4 Jan 2014, 09:27 PM Reply Like
  • DGI_Wolverine
    , contributor
    Comments (46) | Send Message
     
    Excellent comment EK. Agree with you 100%.
    5 Jan 2014, 06:21 PM Reply Like
  • yliu54
    , contributor
    Comments (171) | Send Message
     
    Translation-----------...
    We were, are, will be printing markets higher.
    3 Jan 2014, 02:59 PM Reply Like
  • DGI_Wolverine
    , contributor
    Comments (46) | Send Message
     
    Hard to tell, but it sounds like you guys are complaining.
    3 Jan 2014, 03:23 PM Reply Like
  • thotdoc
    , contributor
    Comments (1839) | Send Message
     
    Likely they are, as they are looking down the road.

     

    I'm complaining too.

     

    Why? You can only screw the pooch for so long until you have to pay the price.
    3 Jan 2014, 03:29 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6488) | Send Message
     
    DGI,
    it sounds like "frustrated bear" disease or
    "fed obsession" complex either one is harmful to
    your financial health...
    3 Jan 2014, 03:44 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    Fear&Greed
    What I feel about the Fed and how I trade are two different issues.

     

    There are many seniors and used to be middle class people who do not trade and do not own stocks. Those are the people I was referencing in the first paragraph of my above post. ZIRP has hurt these people severely.
    3 Jan 2014, 03:52 PM Reply Like
  • DGI_Wolverine
    , contributor
    Comments (46) | Send Message
     
    Since when doesn't the middle class own stocks? And a good portion of the middle class still owns a home or a car that they have been able to purchase or refi at historically low rates, helping to free up hundreds of dollars of disposable income every month.
    3 Jan 2014, 04:25 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6488) | Send Message
     
    DGI,

     

    many refuse to see the wealth effect that was created.. & it goes
    to many in the middle class who worked 30 yrs had a retirement
    account that has come back from being cut in half to being positive;
    if one doens't think those folks don't feel better about things ,, think again

     

    By the way they are the boomers and they make up a pretty
    good portion of society..
    3 Jan 2014, 04:29 PM Reply Like
  • DGI_Wolverine
    , contributor
    Comments (46) | Send Message
     
    F&G,

     

    You are probably right. I think we still have too many people that allow politics to play a large role in their investment decisions. Or else, why the complaining?
    3 Jan 2014, 04:52 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    FearandGreed

     

    Why do I believe that you wouldn't know the people I am referring to if you ran them over with your sports car. Get away from the Brooks Bros and Saks Fifth Ave crowd and see the real effects of Ben's policy. Believe me, no insult intended.

     

    Lets see now for starters, 50 million people on food stamps, 10 plus million people on disability, household income below 40 years ago in adjusted dollars, unemployment at record levels, the average life of an auto on the road is slightly below 10 years old compared to a historic norm of below five years. I don't think people are keeping old cars because they simply don't want to incur capital gains tax on their fantastic stock gains. I hope you get the point.

     

    Wow, Ben has been just great for the average person. The people I am referring to don't have a house to refinance and struggle to pay the electric bill each month. Forget a retirement account that has come back; most don't have a retirement account to start with. The old person used to get 5% or so on a crummy CD and now they have to spend the principal and are scared to death what will happen when the money runs out.

     

    Go to a retirement or senior citizens center and see how most really live. Forget that, simply go to senior housing in FL or AZ and talk to most there. Sure the top 15% or so are fine but the rest are struggling to varying degrees.

     

    Ben has been a disaster for all but the top 15% or so. I have heard him at several pressers refer to the aforementioned people as "collateral damage for the greater good". Sure, the good of the bankers and top tier of society.

     

    By the way, I am in that top % that really doesn't have to worry but to say that Ben has helped anyone below the top, say, 15% or so is pure folly. I am sure the people you work with are doing just fine and you do them a good job. Those people are not the focus of my original post.

     

    Enjoy the weekend. Time to go to Happy Hour.
    3 Jan 2014, 05:29 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6488) | Send Message
     
    wyo,
    u certainly know how to stereo type people, dont u ..

     

    Far from what u describe, anyway read my comments again sir,

     

    the boomers i am referring to aren't the brooks bros. and
    other nonsense u just spouted . and they aren't in the
    top 15% , they put their kids thru college and have their
    retirement funds to now get by. and thankfully their funds
    are up considerably . I doubt u can see that .. because of your
    fed obsession .. my friend that is hardly the disaster you
    now portray has fallen on us. the folks u want to
    talk about would be in the same shape no matter what the fed did .
    when will most realize that ?. is the fed here to make everyone rich
    and famous ? honestly ,that is sheer nonsense .

     

    Me thinks u doth protest too much ,, and the fed
    obsessed and frustrated bear monikers may just apply .

     

    Enjoy your weekend also , i am going to review a portfolio of a client
    that has increased 220 % since the fed got involved. He worked 40 yrs
    as a union employee for a large telecom co. Now,If i told him
    about brooks bros. he would ask me where do they live

     

    -- get the point now ?
    3 Jan 2014, 05:54 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    I think you need a mirror as you are what you accuse others (me) of. Take things a bit personal now do you.
    For every employee you mention (union or otherwise) I could think of 100 I've known and know who wouldn't know a stock from a bond.
    3 Jan 2014, 06:06 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    Fearand greed
    How much did you lose your client in 2008?
    3 Jan 2014, 06:10 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6488) | Send Message
     
    wyo,
    I simply reply to the rhetoric u spouted which is the same
    rhetoric of a fed obsessed frustrated bear --
    Why do i need to take it personal, after all I'm quite happy with
    the results that the big bad fed has done so far, in contrast u seem
    to be the one that is on edge here about the fed's policies.
    To answer your question..
    I employed risk management, as shared here in my blog:
    http://bit.ly/1b5zj1u
    BUT for those that did NOTHING they are now up 170 %
    or haven't u seen the S & p lately,

     

    Now for those that did employ risk management the
    gains are much greater that that or haven't u seen the S & P lately ?

     

    Here is a reminder S & P was 666 , S & p now 1800 +

     

    u can think of a 100 people? , comical,, sir there are thousands
    that fall in to the SAME category i detailed .. & believe me they
    are grateful to be where we are today ... Now the 100 that u know
    - did they work? ever work ? cause the person I used in my example
    was a simple family man that worked for 40 yrs and certainly
    knew what a stock or bond was since they had a 401k or other ira account.

     

    Like i said before, the person u refer wasn't going to be better off no matter
    what the fed did or didn't do
    3 Jan 2014, 06:37 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    You my friend have a serious case of hubris.
    If you are as good as you claim that wouldn't be the case.
    Therefore, you hide something. What, I could care less.
    Mother didn't teach you well, or else you failed to listen to her.

     

    Oh, BTW, the 100 worked real hard.
    3 Jan 2014, 07:01 PM Reply Like
  • WMARKW
    , contributor
    Comments (10690) | Send Message
     
    F&G - I don't think the middle class has much in the way of "financial assets".

     

    Average net worth of 65 and over was $232,000. Data shows numbers for other age cohorts.
    http://bit.ly/I0Sz4F

     

    Only 17% of people retiring in 2011 have savings, not including primary residence, over $250k.
    http://bit.ly/z14azL

     

    With $250,000 you can take 10,000 a year out of the bank and give yourself a 2% raise every year so long as you are earning 4% on your portfolio. That sounds like a tough life adding it only to Social Security - and that's for the top 17%.

     

    What about the bottom 83%. Fully 60% of those retiring have less than $50,000 saved. OUCH.

     

    Data from the Employee Benefit Research Institute (EBRI) suggests that the number of workers saving for retirement has continued to fall through 2012. The average retirement account balance in 2010, according to the Fed’s data, was only $170,000, while the median account was almost a quarter of this size, coming in at $44,000. Such a large disparity between the median and average is a result of a disproportionately small number of people having relatively large balances in their retirement accounts. Over 85% of those families in the top quintile of income have retirement accounts, whereas only 11% of those in the bottom quintile do."

     

    The share of the U.S. stock market that U.S. households own both directly and through retirement accounts has fallen from 68% in 2000 to around 61% today. Equities have also been losing favor in pension funds and insurance companies since 2004.

     

    http://bit.ly/12ePs0M
    3 Jan 2014, 07:13 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6488) | Send Message
     
    Wyostocks

     

    my commentary here on SA is documented , i have nothing to hide ..
    and no agenda - the blog is there ..

     

    It aint braggin if u can do it,,

     

    No conviction in your belief or plan equals limited success..

     

    As for u , i guess u know more than all of the central bankers
    on the globe and the army of Phd's that the fed has at its
    disposal to arrogantly state that things should have been done
    differently ,,

     

    Maybe u need to look in that mirror repeat those words ad see
    how arrogant and ridiculous it sounds,, Yes u are more educated ,
    well versed and have more experienced that all of the those folks
    put together to come to the conclusions you spout..
    3 Jan 2014, 08:04 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6488) | Send Message
     
    Wmark
    and your conclusion is that the fed could have done something
    differently to help the folks u write 5 paragraphs about ?

     

    if so please explain ,, as maybe u are also more educated ,

     

    and have more experience than the fed and its contingent..

     

    thanks
    3 Jan 2014, 08:07 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    FearandGreed
    Hubris. What's the matter? Fear? You are supposedly the "pro".
    As such, why the hubris?
    If you are such a fabulous investor why write responses to someone who is not "more educated ,
    well versed and have more experienced that all of the those folks
    put together to come to the conclusions you spout.."

     

    What are you afraid of?

     

    I am damn glad you are getting any fees from me.
    3 Jan 2014, 08:16 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    Fearandgreed
    Nice to see you insult everyone, not just me.
    Having read WMARKW's posts for a long time, I give him a lot more credibility than you.
    3 Jan 2014, 08:18 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (6488) | Send Message
     
    after reading your commentary you would.. not surprised..

     

    u did a bit of insulting on here my friend with your commentary

     

    i'll simply wait for the replies to tell us all what the fed
    should have done differently
    3 Jan 2014, 08:32 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1160) | Send Message
     
    in 2006 &7 my cash holdings were throwing off almost $50k per year in interest. Today that same amount of cash will generate about $300 in interest income. Investing in the stock markets carries the risk of volatility and loss as well as the possibility of gains. I find it difficult to follow the your logic that it is a good idea to penalize one segment of investing public in order to bail out another group, namely those stock investors that didn't have the sense to clear out when things were getting bubbly and ended up taking a substantial hit.
    3 Jan 2014, 09:02 PM Reply Like
  • DGI_Wolverine
    , contributor
    Comments (46) | Send Message
     
    What would you propose the Fed should have done differently? Their primary objective was not to penalize one segment of the investment public, you know.
    4 Jan 2014, 09:26 AM Reply Like
  • EK1949
    , contributor
    Comments (1667) | Send Message
     
    "Lets see now for starters, 50 million people on food stamps, 10 plus million people on disability, household income below 40 years ago in adjusted dollars, unemployment at record levels, the average life of an auto on the road is slightly below 10 years old compared to a historic norm of below five years. I don't think people are keeping old cars because they simply don't want to incur capital gains tax on their fantastic stock gains. I hope you get the point."

     

    I hope it's the right point, that a crisis this deep calls for far more than monetary policy can deliver. If accommodative policy isn't enough the answer isn't unaccommodative monetary policy (in multiple choice that's the ha ha answer you're supposed to know not to choose), it's a double dose of accommodation, the medicine originally prescribed in 2009 but cut off soon after. What we needed was the Romer plan, we got the Summers plan. OK, that was then. Right now a $1T plan spread out over the next few years would be the equivalent of the deficit dropping half as fast over the last few years.

     

    OK people, who thinks the deficit dropping only half as far as it has would be a bad trade for 5% unemployment and rising wages? Think about it, the deficits at ,oh, $800B and falling, inflation hits 5% along with unemployment, wages are in a pincer movement as minimums rise and skilled workers see hikes as shortages, real honest to Pete labor shortages kick in. Who wouldn't want to see that?

     

    If you really, I mean REALLY want to do something about "50 million people on food stamps, 10 plus million people on disability, household income below 40 years ago in adjusted dollars, unemployment at record levels, the average life of an auto on the road is slightly below 10 years old compared to a historic norm of below five years" then you have to use methods that work. So long as people think we are too poor to spend to get rich we'll stay poor and live way below our means. When we've had enough, we'll get back to work and spend as much as we need to do it. It can't happen soon enough for me.
    4 Jan 2014, 07:39 PM Reply Like
  • WMARKW
    , contributor
    Comments (10690) | Send Message
     
    F&G - I merely provide evidence to refute the thought you posed as follows:

     

    "many refuse to see the wealth effect that was created.. & it goes
    to many in the middle class who worked 30 yrs had a retirement
    account that has come back from being cut in half to being posit"

     

    Perhaps the key phrase "to many in the middle" class is too broad sweeping.

     

    There aren't many in the middle class who have much money to invest.
    5 Jan 2014, 01:26 PM Reply Like
  • wyostocks
    , contributor
    Comments (8914) | Send Message
     
    For those who think the Fed is filled with people who really know what they doing I offer the following:

     

    http://bit.ly/1a97N4Y

     

    The above contains a further link to the entire speech.
    5 Jan 2014, 01:49 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1160) | Send Message
     
    To DGI - It is possible the Fed made the right moves early on with the first round of QE (but I doubt it). The Fed made the horrible mistake of letting things go to their heads after that. The subsequent rounds of QE only succeeded to facilitate and worsen the political divisiveness we are experiencing. Bernanke is an unelected official who has stepped in and usurped the responsibilities of our elected officials in Congress and the Executive branches. It is not his job to fix the economy. That is Congress' job. His overinflated ego has caused him to try to save the economy single handedly, but will in fact will contribute to the complete collapse of our democratic way of governing ourselves. Period.
    5 Jan 2014, 10:40 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1160) | Send Message
     
    Why is Bernanke even talking about this now? Makes me suspect there is pressure building and the market will try to force the Fed to back down the taper, small as it is, by throwing one of it's tantrums.
    3 Jan 2014, 04:10 PM Reply Like
  • Economic Analyst
    , contributor
    Comments (2816) | Send Message
     
    I've started a new website seeking many seniors and used to be middle class people who do not trade and do not own stocks.

     

    http://bit.ly/1cO68m5
    3 Jan 2014, 04:11 PM Reply Like
  • Interesting Times
    , contributor
    Comments (13104) | Send Message
     
    EA

     

    Please post COMMENT in my chapter with the link. I will then add that link to the blogs description. Were up to chapter 43 or add it in the portfolio section when you have time.

     

    The premise seems to be a nice fit for the blog!!

     

    IT..
    4 Jan 2014, 01:49 AM Reply Like
  • Interesting Times
    , contributor
    Comments (13104) | Send Message
     
    EA

     

    Also check the link as i got an error message.. Looking forward to the website...Hope it is a blog and free for all??
    4 Jan 2014, 01:52 AM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    I would challenge the assumption that it's "good" for the middle class to encourage them to take out car loans and giant mortgages. Note in the latter case that the beneficiaries are only those who already own homes, not first-time buyers, for whom the low interest rates only compensate for artificially elevated home prices. So that's merely one more government-facilitated wealth transfer from the 30 and under crowd to their parents (the others being social security, medicare, and essentially every pension policy, public or private, which now all grossly discriminate against recent hires versus those who vested in their plans years ago).

     

    Regarding the middle class and stocks, the bottom 50% of wage earners own essentially no equities. If they own homes, the Fed has increased their equity (and property taxes). If they rent, the Fed has simply driven up their monthly expenses. There is absolutely no question that Fed policy is regressive; it disproportionately benefits the wealthy, and dramatically so. You can debate whether this is good or not, but you can't debate that it's the case.
    3 Jan 2014, 05:11 PM Reply Like
  • mr clark
    , contributor
    Comments (662) | Send Message
     
    the big problem with QE and deficit printing is that it subsidizes the top 1, even 10%, making a killing off defense, tech, healthcare contracts, on top of wall street criminals and stock insiders and options holders

     

    even worse, it inflates the money supply, add in China, Japan, Europe etc printing and suddenly - wow, everything is more expensive! gas is up 100% in 10-15 years, housing 50-100%, materials, healthcare, cable bills, phone bills, DMV fees, everything up up up

     

    while household income is down down down, except for those insiders and comfortably numb boomers benefiting from the stock and real estate bubble
    3 Jan 2014, 08:07 PM Reply Like
  • al roman
    , contributor
    Comments (9740) | Send Message
     
    I hope this doesn't get really mean that has been my biggest concern.Austerity is here.
    3 Jan 2014, 08:21 PM Reply Like
  • RS055
    , contributor
    Comments (3205) | Send Message
     
    QE has stolen about $400 Billion/year for 5 years = $ 2 Trillion and counting - From savers and given it to the financial sector/borrowers.
    There is no place for a hardworking person to stick their dollars without losing 2-3% annually ( call it 50% per decade) in real terms. To point to what may be fleeting gains in the stock market as a defence is ridiculous. The market is overvalued in reference to any point since WW2 other than the Dot-Com bubble peak. that is not comforting. All the gains of the last year could easily vanish like mist in the morning - in a 2 week period. But - that $2 trillion in lost interest - that is real.
    3 Jan 2014, 08:49 PM Reply Like
  • sl100
    , contributor
    Comments (112) | Send Message
     
    Feds are loaded with 4.2 Trillion balance sheet and by year end 2014 they will have 5.5T(Aprox). They have gone too far with this. Savers who did nothing wrong got screwed big time with annual loss in interest of 350B(total of 1.75T) basically they stole this from the hardworking people who did not burden the society. Debt is the only way for these guys to solve problem now they have so much of it that they need to come to public every week and tell things are just fine and are improving so that people can buy stocks at elevated levels. They are masters of creating bubbles on grand scale, instead of stopping all the mal investments.

     

    They never ever tell you how much debt is now in the system as a total which now much larger than 2007 before the crash. Example corp debt has gone from 6.5T to 12.5T in just 5 years and growing. I have not see one article in the MS media or The feds telling people to cautious about the corp debt levels. Margin debt is also the higest ever close to 450B. Who do blame just Feds they are problem for entire worlds population, billions of people are dying due to inflation due to these mis directed policies sad but true no one wants to talk about.
    3 Jan 2014, 09:22 PM Reply Like
  • al roman
    , contributor
    Comments (9740) | Send Message
     
    The actuality of work done product flow and capital allocation is really all that should matter,a good steward of capital should be able to survive many different administration and style,the goal is self preservation and those of your comrades anything else is what destroys families and nations.
    4 Jan 2014, 12:08 AM Reply Like
  • al roman
    , contributor
    Comments (9740) | Send Message
     
    I wonder who Feds Utility provider is ? I would assume Dominion,anybody.
    4 Jan 2014, 07:19 AM Reply Like
  • al roman
    , contributor
    Comments (9740) | Send Message
     
    Back in the 70's they used to tell us "If you get a Lemon,make lemon aid"
    4 Jan 2014, 08:03 AM Reply Like
  • al roman
    , contributor
    Comments (9740) | Send Message
     
    They also used to say "early bird gets the worm""Busy as a bee""Rise and shine""Don't ask what your country can do for you but ask what you can do for your country" I am glad i see it like that in harness until the inevitable.
    To produce and have quality of life with you nation & community & family is ideal and good.
    4 Jan 2014, 08:25 AM Reply Like
  • MrVincent
    , contributor
    Comments (257) | Send Message
     
    The money printing will continue. Nothing we say here is going to change that. Invest accordingly.
    4 Jan 2014, 11:53 PM Reply Like
  • Economic Analyst
    , contributor
    Comments (2816) | Send Message
     
    The money system we have will continue for now. Nothing we say here has not been said before. Invest accordingly.

     

    http://bit.ly/Kuii9x
    5 Jan 2014, 06:21 PM Reply Like
  • sl100
    , contributor
    Comments (112) | Send Message
     
    http://bit.ly/19YfEPb

     

    SnP chart

     

    Debt levels highest in 200 years
    http://bit.ly/JyvkSt

     

    Feds has to say positive things but he knows the markets are in a bubble. He said no issues before real estate bubble but envying knows what happened. These folks have not work in real business and use economic models to predict the future but data input into the model is crap so the results are crap. The world is awash with debt not seen in 200 years, this cannot be pretty. Why people believe these folks after so many disasters in the 15 years is beyond me

     

    Started with LTCM bail out, technology bust , then realestate bubble, now all bubbles realestate, stock market, national debtlevels not seen in 200 years. These only know how to bigger bubbles and no consequences for failure.
    5 Jan 2014, 08:48 PM Reply Like
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