Bernanke's Wall Street Fountain of money continues.....
MGLICKER
Posts: 7,995 ✭✭✭
...Good to see the markets rise for the sixth straight day. The Bernanke scheme continues as planned. Sort of an economic fracking if you will.
By pumping freshly digitized FRN's into the banking system, the low totem pole savers would be "forced" to invest in riskier instruments ie the stock market. As the market rises in this Ponzmanic progression, those risk takers would feel wealthier and spend more money, thus saving the economy from the remnants of the Bush era, Great Recession!
How has that worked out? Certainly those that have been long term investors and more recent speculators mostly have smiles on their faces. I sense though that most of this new found wealth has worked itself back into the wallets of the often maligned 1%. No issue with that, assuming that the *trading was fair and balanced.
Problem though is that this administration has banged the drum of income inequality nonstop for 5 years and I am wondering if this fed fortified handout has done anything to create real growth, new job opportunities or keeping the evaporating middle class at the tread water line.
*Huge assumption BTW!
By pumping freshly digitized FRN's into the banking system, the low totem pole savers would be "forced" to invest in riskier instruments ie the stock market. As the market rises in this Ponzmanic progression, those risk takers would feel wealthier and spend more money, thus saving the economy from the remnants of the Bush era, Great Recession!
How has that worked out? Certainly those that have been long term investors and more recent speculators mostly have smiles on their faces. I sense though that most of this new found wealth has worked itself back into the wallets of the often maligned 1%. No issue with that, assuming that the *trading was fair and balanced.
Problem though is that this administration has banged the drum of income inequality nonstop for 5 years and I am wondering if this fed fortified handout has done anything to create real growth, new job opportunities or keeping the evaporating middle class at the tread water line.
*Huge assumption BTW!
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Comments
<< <i>It sure hasn't done anything for the PM markets
Good thing. It was nearly impossible to deal in the stuff when gold got over $1500.
The fabled 1% certainly includes the HFT's run by the major banks and hedge funds. When you consider that the major banks typically don't have a single losing day in an entire quarter of trading, you know
where the money is being made. Maybe we should call the HFT's the upper 0.1%.
Very interesting comment that should give one pause. Do you care to detail your experiences?
Knowledge is the enemy of fear
<< <i>Good thing. It was nearly impossible to deal in the stuff when gold got over $1500. >>
Do not recall any issue buying or selling over $1500.... not sure what you mean by this... Cheers, RickO
<< <i> It was nearly impossible to deal in the stuff when gold got over $1500
Very interesting comment that should give one pause. Do you care to detail your experiences? >>
Sure. I bought and sold many $20 Dbl Libs and Saints during the gold run up. Market seemed to get a bit frothy as the price jumped much above $1100 and seemingly unsustainable over $1500. It was a high volume, low margin business that would have gotten clobbered with a sudden drop of a couple hundred dollars or more.
Hedging was an option but my volume was not large enough to do that efficiently. I got cold feet at about $1700 and wound things down.
Good buys are more difficult now, but much more comfortable at the $1300 level.