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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Thetwentyrule who wrote (70607)9/29/2006 2:39:16 AM
From: mishedlo  Respond to of 110194
 
Thanks
that paragraph actually appeared in two different blogs
Here is the second reference

globaleconomicanalysis.blogspot.com

I am quite sure I also repeated that paragraph to GST and I believe more than once here as well.



To: Thetwentyrule who wrote (70607)9/29/2006 3:11:38 AM
From: mishedlo  Read Replies (2) | Respond to of 110194
 
Is there anyway the Fed can continue to push up stocks. Because the fed isnt just dropping in cash from helicopters. I think they are building a pipeline for dollars to the NYSE.

I do not believe the Fed is pushing up stocks. OK I think the PPT stepped in during the London bombing but that is about it really.
Certainly not often anyway.

Besides, I am not really sure what pushing up stocks would do.
The masses do not have stocks. The wealthy have stocks. Hmm I seem to recall Japan attempting to push up stock prices. Is that part of that M1 spike?

The masses may have a 401K but most do not have much outside of that. You cant spend that 401K without a huge penalty.

The big problem the Fed faces is that can not produce jobs.People without jobs are going to go bankrupt. That will destroy credit and that is deflation (regardless of what prices do and regardless of what the dollar does). That said, I do expect prices on all kinds of goods and services to fall.

Unless and until someone can tell me how the Fed creates jobs all the Fed will be doing is pushing on a string.

Mish