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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 685.33+1.1%Jan 21 4:00 PM EST

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To: Kirk © who wrote (54740)9/24/2013 1:48:55 PM
From: CrashDavis2 Recommendations  Read Replies (2) of 222173
 
Kirk and GZ,

My two cents - I think the Fed behavior in the past few years is pretty simple. That is, they are keeping rates low and buying bonds/notes to keep the cost to the US government manageable.

Obama and the clowns in DC want to spend more and more money, but folks don't want to pay more taxes. So the US is doing what Japan has done for decades. Borrow money at repressed rates to fund govt operations. Check out the link below. The yearly interest expense hasn't risen much with the explosion in spending since 2008. The Fed isn't keeping rates low to stimulate business, but to help government.

treasurydirect.gov

So, savers are bearing the costs of excessive government, not income earners. Redistribution of money from creditors to debtors. Less painful to the average person and doesn't require a vote in congress.

I don't see how they ever end tapering, the US treasury cannot afford it.

Unless they can engineer a huge stock market rally and capture capital gains taxes!
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