Fed Launches QE3

[Toro]

Your honesty goaded me into looking because for quite a while I've not wanted to see that stat.


Huh. Relieved to say I'm up one percent higher than I was on Jan. 1, 2011!

Good for you.

I was down over 8% last year and am up 5% this year. I've never had a two year stint as bad as this. My only condolence is that a lot of really smart money have struggled over the past two years.

But I think we're going back to test the all-time highs. That's what will happen if past patterns of QE play out over the next few months.

 

[expat_panama]

... down over 8% last year and am up 5% this year. I've never had a two year stint as bad as this. My only condolence is that a lot of really smart money have struggled over the past two years. But I think we're going back to test the all-time highs. That's what will happen if past patterns of QE play out over the next few months.

The latest buzz is that we're coming through a long term cyclical flat--

--and about to go back into more decades of powering up where we really can earn a living. That's what I've been sensing and working with.

We often hear clowns talk about 'beating the market'. That's stupid. It's like buying a loaf of bread at the grocers and screaming "Whoa, I just beat the super market so now I'll tell you what to do with your life savings!!!" Real life some visit the super market for milk, others for eggs, and some of us shop at the stock market for 3-decade aggressive returns while others buy into 5-10 year low volatility.

We're all different and we all win when we meet our own needs.

 

[Nova78]

Fed Launches QE3

Dollar worth a dime ,way to go Obama....buy worthless mortgages with more Bond loans.............

 

[Mad Scientist]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled...

Me too.

My take is the Fed's doing it's job while most press pundits and forum posters are clueless. That's ok, there're billions of incompetents in the world, what matters is that most of us are actually doing pretty well.

The Fed is doing their job? What would that be, destroying the value of the dollar?

Just because some people don't have the smarts to trade stocks or understand that this QE III is a gift to Bankers so they can bet on the Casino Stock Market doesn't make them clueless.

What they do know is that their dollar doesn't go nearly as far as it used to, the overtime is drying up and most of the real good paying jobs have been shipped overseas.

Wouldn't it be nice if we all could go to the Privately Owned Federal Reserve's Discount Window and get free money like all the other Banks can! You know what'll happen if we try that? F*ckin' Security will throw us out of the building!

We're just Peasants and we're supposed to pick up the tab after all the partying has been done by Bankers in the form of Massive Inflation, or Hyper Inflation. Zimbabwe here we come!

I don't begrudge you guys making money off of Stock Trades. I DO have a problem with Bankers artificially propping up the Stock Market with free money then pointing to it and saying "Look, the Economy is doing just fine! Go back to sleep. Watch more MFL Footsbawl".

You guys do understand the principle of "price discovery"? Honest trades put the price of any stock at it's real value. Well can't have that when there's so much Monopoly Money in the system driving up the cost of everything. That's not true Price Discovery.

I'd call that Massive Insider Trading Fraud.

 

[Zander]

IMHO, QE3 is already baked in the cake...... Investors have already priced in every last drop of cheap QE money.

 

[The Rabbi]

Frankly I dont understand it. Businesses are valued based on their profit-earning capabilities chiefly. Who thinks the expanding economy is going to allow companies to earn higher returns on their invested capital? No one. Europe is in decline, China is slowing, the U.S. is stuck in slow to no growth. Argentina is a basket case, as is Venezuala. Brazil I don't know.
The only explanation I can think of is people pouring out of dollars and into anything else.

 

[expat_panama]

...a problem with Bankers artificially propping up the Stock Market with free money then pointing to it and saying "Look, the Economy is doing just fine!...

I was just about to move along ignoring the post as just another nastygram from Captain Snarky. Then it occurred to me: you actually believe it, and that made me pause.

Right now even as we speak bankers all across the US work with the FMEF office at the fed (Free Money Economy's Fine) where trillions of dollars are dispensed to bankers for buying up worthless companies so they can then run outside to the nearest street corner to shout praises for the economy.​

OK, you're not saying it happens that way; but indulge us a little and say how you're thinking this thing really does happen.

 

[iamwhatiseem]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

What is the money going to be worth when it collapses Toro?
There are 10,000's of Toros buying in right now...but how many Toro's will cash out before the collapse - and how many will lose everything?
Either way...the country is going to lose. Big...but we don't care about that do we?

 

[iamwhatiseem]

And BTW - this 400 climb is based on thin air. The markets have already cashed in on the QE3 credit card months ago. The rise in the past few days is all of the latecomers buying into what has already been cashed in.

 

[Toro]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

What is the money going to be worth when it collapses Toro?
There are 10,000's of Toros buying in right now...but how many Toro's will cash out before the collapse - and how many will lose everything?
Either way...the country is going to lose. Big...but we don't care about that do we?

As long as I get out in time, I don't care.

And I can assure you, I will.

 

[Toro]

IMHO, QE3 is already baked in the cake...... Investors have already priced in every last drop of cheap QE money.

When the Dow rises 200 points, then rises the next day, it ain't baked into the cake. It means its probably going higher. Plus, funds were sitting on their highest levels of cash for some time at the end of August. Not many expected the Fed to do what it did. With most funds lagging, and lagging badly, there is a whole lot of firepower sitting on the sidelines that is going to come flooding into the market.

We're going to test the highs!

 

[iamwhatiseem]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

What is the money going to be worth when it collapses Toro?
There are 10,000's of Toros buying in right now...but how many Toro's will cash out before the collapse - and how many will lose everything?
Either way...the country is going to lose. Big...but we don't care about that do we?

As long as I get out in time, I don't care.

And I can assure you, I will.

You grew up in the 80's eh?

 

[Zander]

IMHO, QE3 is already baked in the cake...... Investors have already priced in every last drop of cheap QE money.

When the Dow rises 200 points, then rises the next day, it ain't baked into the cake. It means its probably going higher. Plus, funds were sitting on their highest levels of cash for some time at the end of August. Not many expected the Fed to do what it did. With most funds lagging, and lagging badly, there is a whole lot of firepower sitting on the sidelines that is going to come flooding into the market.

We're going to test the highs!

We will see. I think you're going to be disappointed.

Egan-Jones downgraded the US credit rating today saying..

issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.

In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power,

I can't see how the markets will rise in the face if impending doom.... But the madness of crowds never ceases to amaze....That is why I am content to sit on cash (my short position in "play money" notwithstanding).

 

[Mr. H.]

Does Quantitative Easing Mainly Help the Rich? - Yahoo! Finance

Last month, the Bank of England issued a report that must have made Fed chairman Ben Bernanke squirm.

U.S. Federal Reserve Chairman Ben BernankeIt said that the Bank of England's policies of quantitative easing -- similar to the Fed's -- had benefited mainly the wealthy.

Specifically, it said that its QE program had boosted the value of stocks and bonds by 26 percent, or about $970 billion. It said that about 40 percent of those gains went to the richest 5 percent of British households.


Many said the BOE's easing added to social anger and unrest. Dhaval Joshi, of BCA Research wrote that "QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it."

 

[Paulie]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

I went short late this afternoon....

You've been going short for like the last 3 years.

Any day now though, right?

 

[Toro]

IMHO, QE3 is already baked in the cake...... Investors have already priced in every last drop of cheap QE money.

When the Dow rises 200 points, then rises the next day, it ain't baked into the cake. It means its probably going higher. Plus, funds were sitting on their highest levels of cash for some time at the end of August. Not many expected the Fed to do what it did. With most funds lagging, and lagging badly, there is a whole lot of firepower sitting on the sidelines that is going to come flooding into the market.

We're going to test the highs!

We will see. I think you're going to be disappointed.

Egan-Jones downgraded the US credit rating today saying..

issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.

In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power,

I can't see how the markets will rise in the face if impending doom.... But the madness of crowds never ceases to amaze....That is why I am content to sit on cash (my short position in "play money" notwithstanding).

The market doesn't believe doom is impending. I'm letting the market talk to me. And the market is screaming that it is going higher.

And if we are going to have the impending doom the doomsters say, your cash is going to be worth a whole lot less.

I do think that the Fiscal Cliff and the Debt Ceiling will start being priced in around the election. That could cause a sell-off. But I think we'll be at or near the highs by then.

 

[Toro]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

I went short late this afternoon....

You've been going short for like the last 3 years.

Any day now though, right?

The market has returned 90% since the beginning of 2009. It has been in a pretty strong bull market.

 

[Toro]

It should be noted - in all due respect to Zander - that the deflationists have been incorrect. Clearly, the money printers have won. And if we get inflation or hyperinflation out of it, asset prices will rise. Cash will lose its value. If we're going to have inflation and no response from the central bank, stocks and gold are going to go higher.

 

[alan1]

Fed Launches QE3

Dollar worth a dime ,way to go Obama....buy worthless mortgages with more Bond loans.............

Albert Einstein Quote

Insanity: doing the same thing over and over again and expecting different results

.

 

[Zander]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

I went short late this afternoon....

You've been going short for like the last 3 years.

Any day now though, right?

I've been in cash or treasuries for 3 years. A few times over the last 3 years I have dabbled in short funds with varying degrees of success and a few failures. But that is with my funny money. My "serious" money strategy hasn't changed....cash is winning.