Before The Fed Announced QE3, I thought there would be a huge crash soon.

[philosophstar]

Now I think that if the S&P 500 got below 1250, that would be shocking.

Still, there's always the Eurozone. That isn't even close to being resolved.

 

[philosophstar]

I still wouldn't buy any bank stocks now. I'd wait for a 30% drop in those. Still, 30 years from now, they might really be worth something. Maybe even 80% of the 2007 high.

 

[TruthSeeker56]

Now I think that if the S&P 500 got below 1250, that would be shocking.

Still, there's always the Eurozone. That isn't even close to being resolved.

You have it reversed.

The huge crash will happen now that QE3 has been announced.

What will you do when the DJIA drops to 5,000 or less?

 

[eflatminor]

Before The Fed Announced QE3, I thought there would be a huge crash soon.

Now that they continue to monetize the debt, you can count on a huge crash later.

 

[philosophstar]

You have it reversed.

The huge crash will happen now that QE3 has been announced.

What will you do when the DJIA drops to 5,000 or less?

Now that they continue to monetize the debt, you can count on a huge crash later.

Revive this thread when the DJIA drops through 5000 or when the S&P drops through 600. Shouldn't happen in my lifetime, as I see it.

 

[eflatminor]

You have it reversed.

The huge crash will happen now that QE3 has been announced.

What will you do when the DJIA drops to 5,000 or less?

Now that they continue to monetize the debt, you can count on a huge crash later.

Revive this thread when the DJIA drops through 5000 or when the S&P drops through 600. Shouldn't happen in my lifetime, as I see it.

Let's assume you're correct. What a FUCKED UP thing to do to the next generation! Personally, I can't be that cruel to those yet to be born.

 

[philosophstar]

You have it reversed.

The huge crash will happen now that QE3 has been announced.

What will you do when the DJIA drops to 5,000 or less?

Now that they continue to monetize the debt, you can count on a huge crash later.

Revive this thread when the DJIA drops through 5000 or when the S&P drops through 600. Shouldn't happen in my lifetime, as I see it.

Let's assume you're correct. What a FUCKED UP thing to do to the next generation! Personally, I can't be that cruel to those yet to be born.

Uh, how is avoiding a market crash fucked up?

 

[eflatminor]

Revive this thread when the DJIA drops through 5000 or when the S&P drops through 600. Shouldn't happen in my lifetime, as I see it.

Let's assume you're correct. What a FUCKED UP thing to do to the next generation! Personally, I can't be that cruel to those yet to be born.

Uh, how is avoiding a market crash fucked up?

Monetizing the debt may help to bolster the stock market in the near term, but in the long run, it causes a massive crash to the entire economy, not just the stock market. If you study history and the causes of hyperinflation, monetizing the debt is generally the last step before everything goes down the toilet.

As it stands today, every taxpayer's share of the debt is about $140,000...and that's with interest rates near zero. What do you think will happen when we return to historically normal interest rates, much less hyperinflation?

Oh well, who cares? Screw the kids...let our largess be their problem.

 

[philosophstar]

Let's assume you're correct. What a FUCKED UP thing to do to the next generation! Personally, I can't be that cruel to those yet to be born.

Uh, how is avoiding a market crash fucked up?

Monetizing the debt may help to bolster the stock market in the near term, but in the long run, it causes a massive crash to the entire economy, not just the stock market. If you study history and the causes of hyperinflation, monetizing the debt is generally the last step before everything goes down the toilet.

As it stands today, every taxpayer's share of the debt is about $140,000...and that's with interest rates near zero. What do you think will happen when we return to historically normal interest rates, much less hyperinflation?

Oh well, who cares? Screw the kids...let our largess be their problem.

Why don't you tell the Japanese people about hyper-inflation? It should have happened 4 years ago, according to some people.

Oh, and don't give me that horseshit about an individual citizen's share of the debt and the burden on future generations. National debt really doesn't work that way.

 

[philosophstar]

We should get debt-to-gdp back in order, but trying to do so when the labor market is this bad would be counter-productive, both on the balance sheet and on job prospects for unemployed people.

 

[eflatminor]

Uh, how is avoiding a market crash fucked up?

Monetizing the debt may help to bolster the stock market in the near term, but in the long run, it causes a massive crash to the entire economy, not just the stock market. If you study history and the causes of hyperinflation, monetizing the debt is generally the last step before everything goes down the toilet.

As it stands today, every taxpayer's share of the debt is about $140,000...and that's with interest rates near zero. What do you think will happen when we return to historically normal interest rates, much less hyperinflation?

Oh well, who cares? Screw the kids...let our largess be their problem.

Why don't you tell the Japanese people about hyper-inflation? It should have happened 4 years ago, according to some people.

According anyone that has studied economic history, it will come. Always does.

Oh, and don't give me that horseshit about an individual citizen's share of the debt and the burden on future generations. National debt really doesn't work that way.

By all means, enlighten us.

 

[philosophstar]

Monetizing the debt may help to bolster the stock market in the near term, but in the long run, it causes a massive crash to the entire economy, not just the stock market. If you study history and the causes of hyperinflation, monetizing the debt is generally the last step before everything goes down the toilet.

As it stands today, every taxpayer's share of the debt is about $140,000...and that's with interest rates near zero. What do you think will happen when we return to historically normal interest rates, much less hyperinflation?

Oh well, who cares? Screw the kids...let our largess be their problem.

Why don't you tell the Japanese people about hyper-inflation? It should have happened 4 years ago, according to some people.

According anyone that has studied economic history, it will come. Always does.

Oh, and don't give me that horseshit about an individual citizen's share of the debt and the burden on future generations. National debt really doesn't work that way.

By all means, enlighten us.

Accrued national debt can be hyper-inflationary. What we don't know is at what point it does become so.

The example of Japan says that that point isn't close for us. Just look at the bond yields of both Japan and the USA.

Heck, the USA's bond yields went to record lows after QE2 ended.

Oh, and the USA had about the same debt-to-GDP ratio after WWII as it does now. The war debt wasn't paid off. It became insignificant via economic growth.

 

[eflatminor]

Accrued national debt can be hyper-inflationary. What we don't know is at what point it does become so.

Agreed. Personally, I'm not willing to roll the dice when it won't be me, but those yet to be born, that will be forced to face the music.

The war debt wasn't paid off. It became insignificant via economic growth.

Agreed. I'm advocating we grow out of this, not try to monetize our way out. We certainly can't tax our way out. Live within our means, allow business to thrive, stop spending the funny money...

 

[philosophstar]

Accrued national debt can be hyper-inflationary. What we don't know is at what point it does become so.

Agreed. Personally, I'm not willing to roll the dice when it won't be me, but those yet to be born, that will be forced to face the music.

The war debt wasn't paid off. It became insignificant via economic growth.

Agreed. I'm advocating we grow out of this, not try to monetize our way out. We certainly can't tax our way out. Live within our means, allow business to thrive, stop spending the funny money...

How can businesses thrive when there is so little consumer demand?

 

[eflatminor]

Accrued national debt can be hyper-inflationary. What we don't know is at what point it does become so.

Agreed. Personally, I'm not willing to roll the dice when it won't be me, but those yet to be born, that will be forced to face the music.

The war debt wasn't paid off. It became insignificant via economic growth.

Agreed. I'm advocating we grow out of this, not try to monetize our way out. We certainly can't tax our way out. Live within our means, allow business to thrive, stop spending the funny money...

How can businesses thrive when there is so little consumer demand?

Free markets, low taxes, maximum freedom. Works every time!

 

[TakeAStepBack]

Manipulated interest rates and currency monopolization? No free market.

 

[philosophstar]

Agreed. Personally, I'm not willing to roll the dice when it won't be me, but those yet to be born, that will be forced to face the music.



Agreed. I'm advocating we grow out of this, not try to monetize our way out. We certainly can't tax our way out. Live within our means, allow business to thrive, stop spending the funny money...

How can businesses thrive when there is so little consumer demand?

Free markets, low taxes, maximum freedom. Works every time!

It was said that Ireland had all of those. How is that country faring?

 

[philosophstar]

Manipulated interest rates and currency monopolization? No free market.

Well, considering the low nominal interest rate was maintained in the interim between QE2 and QE3, I think that allegations of manipulation are overblown.

Oh, and the gold standard is bullshit. If anything, that would be currency monopolization.

 

[TakeAStepBack]

OK. Watch the price of gold hit an all time high by this time next year. Gold will absolutely SOAR under QE3. Why is that?

 

[philosophstar]

OK. Watch the price of gold hit an all time high by this time next year. Gold will absolutely SOAR under QE3. Why is that?

That's because the value of gold increases in a low interest rate economy. It indicates nothing more.