Debt Rattle Jul 9 2014: Don’t Go Walk Under Wall Street Windows

 

Home Forums The Automatic Earth Forum Debt Rattle Jul 9 2014: Don’t Go Walk Under Wall Street Windows

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  • #13945

    Harris & Ewing Controlled demolition, Washington DC Sep 17 1935 Irwin Kellner at MarketWatch phrases it in these colorful words: … what do you think
    [See the full post at: Debt Rattle Jul 9 2014: Don’t Go Walk Under Wall Street Windows]

    #13949
    rapier
    Participant

    Asset prices are rising because of extravagant amounts of liquidity in the financial sphere. The Taper will this month leave the Treasury selling more bills and notes than the amount of QE but then in Aug and Sept there should be a positive balance again. After that again the QE liquidity will fail to meet all the Treasuries needs. Then we may begin to see something. You can talk about worry and fear till the end of time but those don’t move the markets, money does.

    Then too the BOJ is still printing. At any rate I will bet that when a correction comes the Fed will throw the QE window open wide again. I suppose I could be wrong because after all such a move will prove they are weak. The ZH theory that they will risk a correction which could slip out of control is I am guessing wrong. Nobody in power has the balls anymore to take such a risk. Unless that is if they see more QE risks causing rates to rise, buy that seems impossible.

    When the day comes, this cycle or the next or the one after that when interest rates rise no matter how much they print then you will know change has finally happened.

    #13950
    Gravity
    Participant

    Gravity is the first algorithm.
    Un-first of His name.

    Weight is coming.

    #13951
    Raleigh
    Participant

    Yellen: “In a nutshell, she said “It’s not the Fed’s job to pop bubbles”.

    No, it’s her job to set them up in the first place, then engineer and steer them. If they look like they’re losing air, she rushes back in and blows harder.

    Up, up and away in my beautiful balloon!

    #13952
    ₿oogaloo
    Participant

    I think we need to at least consider the possibility that we might never see a correction or a crash in the stock market in nominal terms. In real terms, of course, it will definitely happen. It has to happen. But in nominal terms the market could go from here to infinity.

    I do not expect the central banks to change course. If markets start to swoon, they will double down. They will keep pushing in this direction until they push everything over a cliff.

    #13953
    Professorlocknload
    Participant

    The above scary headlines seem to come from MSM itself. What would a contrarian do?

    And, no, I wouldn’t expect the Fed to throw it’s hands up and let all of it’s doings go up in smoke. To the contrary, we haven’t begun to imagine what these psychos are capable of.

    We haven’t even progressed through the forced replacement of all autos with, say, over 20 k miles on the odometer. Or mandatory demolition of empty housing units older than 20 years. Or across the board $30k “Tax Rebates” or full interest deduction on charge card debt, or a repave of every road in the nation, and new bridges to boot. Or,,,,,,

    What ever it takes to destroy all value left in the currency.

    #13954
    V. Arnold
    Participant

    Some are getting *it*; tiny houses and debt free. Casey’s closing words that we’re going from a milk cow to a beef cow says it all.
    I don’t think most people understand debt and especially credit. Neo-serfdom coming soon to the average Joe.

    #13955
    Professorlocknload
    Participant

    “Policy makers have kept the benchmark interest rate near zero for five years and used bond purchases to hold down long-term borrowing costs, expanding their balance sheet to a record $4.38 trillion in the process.”

    Why is it, $4.38 trillion sounds so insignificant in comparison to all debt, public and private, to include unfunded pension and entitlement liabilities and hundreds of $ trillions in assorted derivatives instruments? Does anyone but me find that $4.38 T number a joke? And certainly, it contributes to the reason the Fed will not be audited anytime soon.

    And since when are Republicans any less spendthrift than Democrats? Oh, but I’m sure if one suggested Con-gress take the Fed’s place as creator of the currency, reds and blues alike would offer standing ovation.

    Best get the QE Bazooka fired up, Janet. Or be roasted by your pals on Capital Hill. Of course, in the end, the Fed will take the hit, ironically, for falling behind in printing everything congress spends.

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