This Bubble's Got Legs
121–130 of 131 posts
Re: This Bubble's Got Legs
#122Re: This Bubble's Got Legs
#123Re: This Bubble's Got Legs
#124Re: This Bubble's Got Legs
#125Re: This Bubble's Got Legs
#126Earlier quoted context omitted.
QE is effectively creating money, which is then used to purchase financial assets in the hope that the person selling it will use the proceeds for something that is economically stimulative. It also reduces borrowing costs along the way. Most central banks buy government bonds. As a result of this buying, the returns on these bonds are reduced and supposedly less attractive to the investors that previously would have…
Well TARP worked out pretty well, right? I think there's a logic to QE in scenarios like the credit crunch, since suddenly banks need cash and there's a bunch of illiquid assets on everyone's balance sheets. But I do agree that owners of treasury bonds aren't really going out and spending their proceeds at Wal-Mart for a while.
We have plenty of jails and very few bankers in them, despite widespread fraud. Again, not sure how this is a success.
We need banks, but we don't need the ones we have. Ruthlessly prune them, guaranteeing the people's deposits, and capitalize new ones with stricter rules. Of course, now it's too late. We've printed trillions of dollars, inflating our currency, and given it to the thieves without (meaningfully) changing the system.
Re: This Bubble's Got Legs
#127According to the OP, we have a global "central-bank-led cash bubble" powered by "an ever flowing money hose." If you believe interest rates are being kept "artificially low" (whatever that means) by the "money printing" of central banks like the Federal Reserve and the Bank of Japan, then you will agree with the OP. In this view of the world, central banks are contributing to our current economic malaise: by keeping…
Saying that interest rates are low because of businesses hoarding cash (as opposed to massive expansion of Fed balance sheet which by definition controls interest rates) is absurd. The Fed themselves acknowledge that their policies are why interest rates are low or negative! The true problem is that QE represents a wealth transfer to the richest among us. New money (which is more powerful at its introduction into the…
Re: This Bubble's Got Legs
#128Earlier quoted context omitted.
I was thinking about that as well, particularly the "complacency index." I have never heard of this composite before, of course I am not an economist but I do follow finance. Can anyone speak to if this is an exotic index?
Banks make up dozens and dozens of these indices for marketing purposes. The idea is that when a client trades with a broker, the broker provides "free" research to the client as a sweetener. That research mostly consists of dodgy trade ideas based on their proprietary "sentiment index" or whatever. The research tends to be low quality in general. I'd guess that the researchers are treated as a cost center rather tha…
Re: This Bubble's Got Legs
#129Earlier quoted context omitted.
But the wealthy, who are the one's who have really benefitted from this free money will buy these chit boxes, and rent them out at outragious ROI. And so will the wealthy foreigner--with a lousy phone call. I've given up on more building. I think we need to open up areas where people can camp without breaking the law. Or, at least allow people to legally sleep in their vehicles. The fines/fees for breaking over strin…
It's really a shame that we've coerced people into earning an income to live, because the means of living that don't require money are largely becoming illegal. Where are you allowed to sleep for free in the US? You could perhaps get a wilderness permit and live in a national park for a time, but I'm not sure what the maximum period of validity is on them. Cities will cite you under anti-camping rules. There isn't re…
https://www.landcentury.com/under-1000-land-deals/
Though some local governments will go after you for zoning violations, check first.