The stock market apparently things that QE is a good thing... (1 Viewer)

[imagep]

Seems like almost every time that the market drops, the media is blaming the drop on concerned that the fed will cut back on QE3, and a lot of times when it goes up the media is giving credit to confidence that QE3 will continue for a long time.

Today, CNN said that since the GDP figures for Q1 were lower than expected, the market went up based upon the expectation that QE3 would be continued for a long time.

Apparently, investors like QE and fear that if it ends, our economy will sour. Or at least that's my interpretation. Or maybe the media is just making up reasons for random events.

Edit: oh, in the header I meant "apparently thinks", not "apparently things"

 

[beerftw]

Seems like almost every time that the market drops, the media is blaming the drop on concerned that the fed will cut back on QE3, and a lot of times when it goes up the media is giving credit to confidence that QE3 will continue for a long time.

Today, CNN said that since the GDP figures for Q1 were lower than expected, the market went up based upon the expectation that QE3 would be continued for a long time.

Apparently, investors like QE and fear that if it ends, our economy will sour. Or at least that's my interpretation. Or maybe the media is just making up reasons for random events.

Edit: oh, in the header I meant "apparently thinks", not "apparently things"

the stock market thinks its good because its pumping dollars into the marker,and fear its end because it would end the artificial growth.

qe already failed japan for over a decade,yet japan is trying it again and the us is trying it as well,its amazing how an idea that has never succeeded and only worked on paper keeps getting pushed.

 

[DA60]

Imo, QE is like crack cocaine to the equity markets.

 

[JP Hochbaum]

Imo, QE is like crack cocaine to the equity markets.

This is something that the right and the left should be in agreement on here. QE only helps those with the ability to save and invest, it does nothing for the unemployed and wage earners.

Unfortunately one side hates fiscal spending and thus we are stuck with one option: QE.

It is a vicious circle indeed.

 

[specklebang]

QE will continue forever as will near zero interest rates. This way, multi-millionaire bankers can borrow money and buy stocks to become billionaires. How else can you explain the rcord high stock market? Are things going great? Better than ever before?

As I've posted elsewhere, QE does very little damage because very few people benefit. No matter how much money you have you can only buy sio many yachts, houses and cars before you lose the thrill of consumption. So, the velocity of money is very low, which has spared us inflation despite our money manufacturing. Of course, outsourcing jobs to H1B or overseas also keeps inflation at bay. Your government is doing an excellent job of convincing you that what matters most is immigration, health care, guns and abortion. So, you don't have time to worry about the house of cards they have constructed, partly at your expense.

 

[head of joaquin]

This is something that the right and the left should be in agreement on here. QE only helps those with the ability to save and invest, it does nothing for the unemployed and wage earners.

Unfortunately one side hates fiscal spending and thus we are stuck with one option: QE.

It is a vicious circle indeed.

Well, it does a little more than that. It allows the government to borrow at low rates and thus put money into the economy in the form of government spending, which employs people and otherwise prevent the deflationary pressure of the Bush Meltdown from taking hold.

It's a good thing for the government to spend right now, and it's best if the money it borrow is at low rates for future payback.