| Author | Message | ||
     Hillsboro Junior Artist Username: Hillsboro Post Number: 68 Registered: 06-2014 Posted From: 50.188.169.23 Rating: N/A |
Nope I think its way different; There will be no short ban or any such thing here. But more like every day utterance by some FED member that they are ready with QE4 package if there is a need. Thats exactly what fed did during the last 3 week correction. It will create fear in shorts & hope with bulls & banks to continue to lend. 2007 was a systemic failure where the reason stock market is crashed because actual economy imploded vis credit contraction. So stock market reacted accordingly. However stock market implosion doesnt lead to economic disaster. What will kill the economy is if it will lead to fear again in credit markets and then recession. FED now is way too aggressive to let that happen. What will tie their hands is inflation. Recent CPI (if its manipulated or not) is low enough for them to engage in QE4 merrily. Its actually in a way stealing from rest of the world (ROW owns more dollars then US) & reducing the US debt servicing. So they will engage in that at first excuse. As long as US has reserve currency status this cycle will continue on; So my bet is stay in the long side for extended time periods with gold hedge (for dollar crash); There will be stock crashes here and there but in the long run you will make money. Show me one one country where the economy crashes and the value of their currency and treasury goes UP! - US & Germany. As long as it does free money will print.  | ||
| Simhapuri_kurrodu Hero Username: Simhapuri_kurrodu Post Number: 13102 Registered: 07-2008 Posted From: 76.109.165.236 Rating: N/A |
just another POV- dont you think this is similar to banning of shorting in 2007 i made a big blunder, i did not sell into that rally. | ||
| Hillsboro Junior Artist Username: Hillsboro Post Number: 67 Registered: 06-2014 Posted From: 50.188.169.23 Rating: N/A |
Zerohedge is Pakka Short website; They are quite right about many things - however they tend to publish only one side of the story always and are Gold bulls. FED will test the waters with couple of months with no QE; If there is trouble in the market they cannot afford to continue. Quick QE4 announcement will come. My guess is they will jaw bone the shorts every day with some utterances of QE4 here and there until economic data thrives above expectation. So BTFD and dont worry. If Dow is going down this time - it will take along with it the dollar. So buy, buy, buy but hedge it with some gold- 10-20% of your capital.  | ||
| Newguy123 Megastar Username: Newguy123 Post Number: 23466 Registered: 01-2009 Posted From: 107.77.70.115 Rating: N/A |
 | ||
| Sbk2012 Side Hero Username: Sbk2012 Post Number: 2997 Registered: 01-2014 Posted From: 216.31.211.11 Rating: N/A |
The End Of QE3, Trouble Ahead For The Bulls? http://www.zerohedge.com/news/2014-10-24/end-qe3-trouble-ahe ad-bulls Submitted by Michael Pollaro via Acting-Man blog, QE3 Is Coming to an End The Federal Reserve’s latest asset purchase program, QE3, is coming to an end. What was once an $85 billion a month program, one in which at its peak had been goosing the financial markets and economy at an annual rate of $1.0 trillion – and over its 27 month life will have pumped $1.7 trillion of money into the economy – is going to zero. Given the outsized impact QE has had on the growth of U.S. money supply and thus the U.S. economy, we say investors take note, especially those furthest out on the risk curve, because what was once your primary tailwind could soon become your greatest headwind. Here’s why… Recapping the tenets we presented here, here, and here, once an economy is subjected to a bout of monetary inflation, whether that be via direct central bank money creation or via money (and credit) creation by the fractional reserve banking system, an unsustainable, artificial economic boom is born, whereby malinvestments (bubbles if you like) are created that sooner or later must be liquidated. And whether that bust takes the form of a hyperinflationary bust or a deflationary bust, bust we will get. The form the bust takes will depend on the course of the inflation. If the central bank/banking system pursues an inflationary course, by throwing continual and importantly ever larger doses of money (and credit) into the economy, the bust will take the form of a hyperinflationary bust – a collapse in the value of the currency and with that a breakdown of the entire economy. If instead the central bank/banking system ends its money creation activities or even moderates that increase in a material way, the bust will take the form of a deflationary bust – a healthy liquidation of the malinvestments made during the boom and with that a commensurate fall in the prices of those same malinvestments. |
