Fed Decides to keep Printing $85 billion/month

Discussion in 'Politics and News' started by senttoschool, Sep 19, 2013.

  1. senttoschool

    senttoschool Golden Member

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    Fed has printed $1.02 trillion to buy bonds since August 2012.

    Fed said today that the economy is too weak so they will keep printing $85 billion/month to buy bonds.

    Because the economy has been so weak, investors responded by pushing Dow Jones to an all-time high.

    So weak economy = all time high stocks

    Make sense to everyone?
     
  2. bbhaag

    bbhaag Diamond Member

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    The more you print the less they're worth.
     
  3. senttoschool

    senttoschool Golden Member

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    Sorry, meant to post this in the Politics forum. So mod, move this if you want.
     
  4. Sluggo

    Sluggo Lifer

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    The sordid economics of the printing press.
     
  5. bradley

    bradley Diamond Member

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    You can buy a heck of a lot of helicopters with 85 billion.
     
  6. Crono

    Crono Lifer

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    I really wish they changed Politics and News to Politics and Economics.
     
  7. baydude

    baydude Senior member

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    As long as it's helping my stock portfolio I'm good
     
  8. Via

    Via Diamond Member

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    What would happen if we stopped printing money tomorrow?

    Not one more dollar bill, except to replace existing currency. How long until everything would be in the shitter economically?

    I don't think it would take a week.
     
  9. Udgnim

    Udgnim Diamond Member

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    just waiting for the eventual market correction once this pumping stops (I'm assuming it stops at some point)
     
  10. SSSnail

    SSSnail Lifer

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    They need to raise interest rates.
     
  11. bradley

    bradley Diamond Member

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    The US wouldn't last another day without being the world's reserve currency. Though our military might wouldn't allow that to happen, capisce? ;)
     
    #11 bradley, Sep 19, 2013
    Last edited: Sep 19, 2013
  12. luv2liv

    luv2liv Diamond Member

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    where can i get a printer like that??????
     
  13. boomerang

    boomerang Lifer

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    When it really gets scary is when you realize that we're buying our own debt.
     
  14. PokerGuy

    PokerGuy Lifer

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    This!

    I want access to one of the printers :D
     
  15. MarkXIX

    MarkXIX Platinum Member

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    Makes prefect sense that stock market would increase. People who CAN make money WILL make as much money as they can before the bubble bursts.
     
  16. lupi

    lupi Lifer

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    I was interested in that process, naturally the government has been creating money since it was founded otherwise the linitied amount of money in existance at the time would not have lasted very as a source to eliminate bartering, but never really read anything on how the amount of new money is periodically injected into the supply.
     
  17. Vdubchaos

    Vdubchaos Lifer

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    As George Carlin would say. It's bunch of BS and in America you get the front seat!!!

    It blows my mind that they still have control and power to do this without any much affiliation or guidance from US Government (which is probably not the best person to drive it anyways, based on their overspending sprees).

    How much longer before the shit really hits the fan?
     
  18. T9D

    T9D Diamond Member

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    I want to freaking punch the federal reserve and this administration in the face. I'm sick of watching the bubble inflate again. Especially housing. God forbid we have affordable housing.

    [​IMG]
     
  19. unokitty

    unokitty Diamond Member

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    Fed Decision Batters Dollar

    While my investments look good now, I won't realize any gains until after I sell my stocks at some future date.

    If the dollars that I receive at that future date are worth less than the dollars that I spent to buy my stocks, then I haven't gained any value. Even if I have gained more dollars.

    Uno
     
  20. Mixolydian

    Mixolydian Lifer

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    I don't care.
     
  21. dank69

    dank69 Lifer

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    You love it!
     
  22. crownjules

    crownjules Diamond Member

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    Stocks have almost nothing to do with economic performance these days. What the bond buying does is provides the banks with liquidity that they're supposed to use to provide loans to businesses and stimulate broad economic activity. But that's only 4-5% yearly returns. Why do that when you can go out and put that money into the markets and get 10-15%?

    In other words, the stock market is doing well because the Fed is basically pumping it. And Congress is also complicit because of the repeal of Glass-Steagal which re-allowed commercial and investment banks to merge operations.
     
    #22 crownjules, Sep 19, 2013
    Last edited: Sep 19, 2013
  23. Mixolydian

    Mixolydian Lifer

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    What do I love and how much do I love it? :whiste:
     
  24. Texashiker

    Texashiker Lifer

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    BRICS is working on a replacement world currency. One that does not involve the US dollar.

    As for the opening post, in other words, tax payers are buying junk debt real investors will not touch.
     
  25. dank69

    dank69 Lifer

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    You love watching it burn.