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Poll: With the end of Fed's QE in sight, U.S. public says 'Huh?'

Erod

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The so-called "recovery" is built on masking tape and Elmer's glue. There's nothing real behind it, other than this constant pumping of federal money into the bond market to make money cheap to borrow and investments artificially inflated.

I fully expect the fed to keep superficially floating the market so we can all pretend everything is OK (and so billionaires can continue to take advantage of unsuspecting and inexperienced investors with no inside knowledge.) When taxes increase from the healthcare fiasco and total tax revenue collapses under the weight of those burdens, the first dominoes will begin to fall.

One day pretty soon, the pumping will end, and the music will stop. Millions won't have a chair to run to. People are going to get hurt, and the trickle down is going to be disastrous.

Then what?
 
Except they didn't.

Fed sticks to stimulus, worried about growth soft spots | Reuters


When it does stop, however, expect the markets to shed about 10-15% over 30 days.
 
Erod said:
Basically, the gangrene is set in, but we're just putting off the amputation as long as we possibly can.
Click to expand...

'Fraid so. A market crash will finish off lots of investors and people with 401s.
 
WCH said:
'Fraid so. A market crash will finish off lots of investors and people with 401s.
Click to expand...

Yep, and notice how the good ole money market funds aren't available anymore in the 401K plans. There's nowhere to hide.

Might be better off taking the 10 percent hit and all-at-once tax rate now, rather than hanging around for the bloody carnage.
 
Erod said:
Yep, and notice how the good ole money market funds aren't available anymore in the 401K plans. There's nowhere to hide.

Might be better off taking the 10 percent hit and all-at-once tax rate now, rather than hanging around for the bloody carnage.
Click to expand...

Even though it's comparatively safe, I've mentions to my Wife about divesting half of her 401.

[Taking it out as a loan she could pay back in time]
 
WCH said:
Even though it's comparatively safe, I've mentions to my Wife about divesting half of her 401.

[Taking it out as a loan she could pay back in time]
Click to expand...

I've done that before, and it makes sense because you pay interest to yourself. In a growth period in the market, it hurts you; but in a down cycle, not only do you pay yourself interest, you buy back in at a lower per-share rate. It's like a short sell.

Then, if you think the market has bottomed, but you can pay the loan off in full and gain shares in the overall exchange.
 
This, from our lying laughingstock of a president today:

 
It would be one thing if we increased the debt ceiling and the increase was never used. Sadly, that's not the case. How the media and citizens of America still put faith in such a statement is amazing.
 
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