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Politics : Formerly About Advanced Micro Devices

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To: RetiredNow who wrote (1036452)11/2/2017 10:35:31 AM
From: zzpat  Read Replies (4) of 1573902
 
Most if not all investors knew QE was inflating asset prices namely securities (low-interest rates, not QE increased housing prices).

Ending QE didn't reduce stock prices but QT most likely will. I'm expecting a drop in the stock market because it's artificial. I think everyone kinda knows this.

QE made stocks go up. QT will make stocks go down. I'm not sure why anyone would think otherwise. If you accept the first premise, the second follows naturally.

The problem is American CEOs. They were gifted low-interest rates, near zero inflation and virtually zero global competition and they still had a hard time making money. My view of American capitalism is that it's seriously flawed. Every time I hear a CEO beg the government to borrow more money to reduce taxes I know this is a CEO who sees trouble on the horizon.

In the end, though QE gave American businesses time to get their act together and many of them wasted time and money. The dumbest thing they did was stock buybacks which added nothing to the value of the company or the economy. Every penny should have been spent on their workforce and investing in the company.

We can't fix dumb and dumb is the new normal.
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