Yellen-The US Economy is Strong

[GFB]

Please tell me how you put money into the stock market without buying stocks.

You get it now?

They did NOT!

[planosteve]

Mark, the Fed did NOT put money in the stock market.

Whoever told you that they did..fibbed to you.

The money was put into the banking system. The banks bought stocks and bonds. The bond bubble is much larger than the stock bubble. But, it looks like the party may be over now which is what I predicted. Without QE, the DOW is down 3.69% for Jan. Gold is up 7.99%. So, gold is up against stocks by almost 12% in 1 month! Not bad for a obsolete, irrevelavent form of money. Mark, you can't argue with Keynesnians like Paul Krugman. They are not rational. Your wasting your time.

[planosteve]

If you are retired on a fixed income and social security, the FED snipers have you in their gunsights. That's because you have savings and the FED wants it. That way they can continue to buy the votes of the food stamp crowd. So, they steal your savings by pocketing the interest you should be earning on bonds and blow the stock market into bubbles to keep you in bonds. They are as political as it gets.

I feel so sorry for you.

Then the sentiment is mutual. Actually, I consider myself pretty lucky. I reached "critical mass" 20 years ago. Yep, I retired in 1995. Most people will never be able to do that. Without compound interest, "investing" becomes nothing but a crap shoot.

[Mark]

Mark, the Fed did NOT put money in the stock market.

Whoever told you that they did..fibbed to you.

Please tell me where the money ultimately landed.

You claim to be a conservative, yet you are a fan of a command economy.

[GFB]

Mark, the Fed did NOT put money in the stock market.

Whoever told you that they did..fibbed to you.

Please tell me where the money ultimately landed.

You claim to be a conservative, yet you are a fan of a command economy.

The Fed bought mortgage backed securities and treasury notes..they still hold them..and I'm pretty sure they are allowing them to rollover at maturity.

They stopped buying them in October.

They did not buy Apple, or Chevron, or any other stocks.

Thinking they did seems to be the basis for a lot of people's confusion.

[John in Plano]

QE didn't buy stocks, planos been making that claim for years

[Mark]

Mark, the Fed did NOT put money in the stock market.

Whoever told you that they did..fibbed to you.

Please tell me where the money ultimately landed.

You claim to be a conservative, yet you are a fan of a command economy.

The Fed bought mortgage backed securities and treasury notes..they still hold them..and I'm pretty sure they are allowing them to rollover at maturity.

They stopped buying them in October.

They did not buy Apple, or Chevron, or any other stocks.

Thinking they did seems to be the basis for a lot of people's confusion.

The banks are not sitting on that free money. I ask again, where did the QE cash ultimately land?

[GFB]

Please tell me where the money ultimately landed.

You claim to be a conservative, yet you are a fan of a command economy.

The Fed bought mortgage backed securities and treasury notes..they still hold them..and I'm pretty sure they are allowing them to rollover at maturity.

They stopped buying them in October.

They did not buy Apple, or Chevron, or any other stocks.

Thinking they did seems to be the basis for a lot of people's confusion.

The banks are not sitting on that free money. I ask again, where did the QE cash ultimately land?

When you buy mortgage backed securities..and treasury notes..you have loaned money to the government to spend.

You have not loaned money to banks.

If you buy Bank ofAmerica bonds..you have loaned money to a bank.

Stock = ownership of a company

Bond = loan to a company or government agency.

You're off track..completely.

[GFB]

Well, I hope this puts an end to the "Fed propping up the stock market" bit.

The Fed does not do that..and even if they wanted to..they have no mandate or tools for doing that.

[GFB]

Hey now..the stock market is back to it's all time highs.

..and I'd keep an eye on what this phoney baloney, QE bloated, bubble market does over the next few weeks and months.

How can this be??

[planosteve]

Hey now..the stock market is back to it's all time highs.

..and I'd keep an eye on what this phoney baloney, QE bloated, bubble market does over the next few weeks and months.

How can this be??

The stock market is not the economy. That why they don't call it stockmarketomics.

[GFB]

Hey now..the stock market is back to it's all time highs.

..and I'd keep an eye on what this phoney baloney, QE bloated, bubble market does over the next few weeks and months.

How can this be??

The stock market is not the economy. That why they don't call it stockmarketomics.

Yes..but the market's in a bubble, remember?

..and it's all going to crash, remember?

..and it's already begun, remember?

(Several times, I think)

[planosteve]

Hey now..the stock market is back to it's all time highs.

..and I'd keep an eye on what this phoney baloney, QE bloated, bubble market does over the next few weeks and months.

How can this be??

The stock market is not the economy. That why they don't call it stockmarketomics.

Yes..but the market's in a bubble, remember?

..and it's all going to crash, remember?

..and it's already begun, remember?

(Several times, I think)

..and it's already begun, remember?

I don't remember that.

[GFB]

Yes..several times you've said.."this is it!"

Whatever the heck "it" is.

[planosteve]

Well, I hope this puts an end to the "Fed propping up the stock market" bit.

The Fed does not do that..and even if they wanted to..they have no mandate or tools for doing that.

Here's the short version of how it works:
"Therefore, to make this really simple, the Fed creates $4 billion a day and eventually some of that money goes into equities. And that, of course, helps keep stock prices elevated. So it doesn’t matter that we are having major problems with the underlying economy and markets that normally would depress stock prices."
Heres the long version:
http://www.forbes.com/sites/investor/2013/01/30/how-the-fed-is-helping-to-rig-the-stock-market/

[John in Plano]

Interesting 2 year old Forbes op/ed piece that clearly shows QE is bond buying and it freed up investors monies. Those investors bought stocks/index funds/etc.



From that link;


David wrote in this week’s TrimTabs Weekly Liquidity Review, “The Fed is exchanging about $4 billion in newly created money every business day for various types of bonds. All else being equal, the Fed’s bond buying puts more money in investors’ hands to buy other assets, including stocks.”

[planosteve]

All it takes is the "smell" of newly created FED money going into the system for speculators to start franticly buying stocks in anticipation of higher prices that the new money will cause. That's what "FED watching" is all about. The smart money gets in first, makes their bundle and gets out. So, it's kind of a Ponzi scheme that the FED springs on the market.

[John in Plano]

Gold / Solver / Platinum

Stocks

Bonds

Real Estate

tulips

pick your pleasure and take your risk

[GFB]

All it takes is the "smell" of newly created FED money going into the system for speculators to start franticly buying stocks in anticipation of higher prices that the new money will cause. That's what "FED watching" is all about. The smart money gets in first, makes their bundle and gets out. So, it's kind of a Ponzi scheme that the FED springs on the market.

The smart money gets in and gets out?

Well then, can you explain why the Dow and S & P are at all time record highs this morning?

..and that's 3 months after the Fed stopped "pumping."

[planosteve]

All it takes is the "smell" of newly created FED money going into the system for speculators to start franticly buying stocks in anticipation of higher prices that the new money will cause. That's what "FED watching" is all about. The smart money gets in first, makes their bundle and gets out. So, it's kind of a Ponzi scheme that the FED springs on the market.

The smart money gets in and gets out?

Well then, can you explain why the Dow and S & P are at all time record highs this morning?

..and that's 3 months after the Fed stopped "pumping."

How do you know they have stopped pumping? They are always pumping. QE was just supplemental pumping. But, the FED is never audited, so there is no way to know what they actually do, only what they say,