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3520 Here We Come 8/28/20


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54 minutes ago, Jimi said:

The reason would be political - to oust the greatest threat to central bank independence since the creation of the Federal Reserve, and potentially, constitutional order.

I'm also not entirely convinced that private equity wouldn't welcome a crash from time to time: improves the terms they can demand for an investment round to distressed companies. Their time horizons are longer than quarterly preoccupation of public markets.

Right. If they are sitting on a ton of cash. I don't know if that's the case now. 

 

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Ok. Maybe someone can comment on the following. Lee and I reached out to Brent Johnson and George Gammon on twitter. There was a big discussion whether QE is money printing and whether it is inflationary.  I believe QE is money printing and it is one of the main drivers of this entire market going back to the Greenspan days.

Steven Van Metre was asked to comment. He says the following:

"No part of QE is inflationary. It pulls liquidity out of the system and removes the ability of the banks to sell bonds to drive interest rates higher. By design, QE leads to lower interest rates and lower rates are deflationary until lending growth returns."
 
His video can be seen here

 

The video makes little sense when comparing prior market and economic events to his vacuum thesis. He bases his definition of money and QE on the Federal Reserve act and does not look at open market operations and other programs.

Have a great weekend.

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I don't pay attention to that nonsense. Of course printing money is designed to bring down interest rates.  

I put my two cents into a couple of twitter threads where this stupidity was raging and not one person bothered to engage.  

My advice would be not to waste your time. Life is too short.  

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1 hour ago, jp6 said:

This is misleading confusing garbage. Mental masturbation at its worst. It wastes valuable time. I turn 70 in November. I don't have the time or the patience for this gibberish and I don't want people wasting time on it.  I just don't want to see pointless, circular discussions here.  

Capiche? 

If you have a direct question for me, I'm happy to answer.  

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As long as the Fed prints enough money to fund the debt, I don't see much point about speculating on a top, at least until the TA shows some signs of one.  

It's probably also a good bet that the Trump Regime will use its $1.6 trillion cash hoard to do whatever it takes to keep stocks rising until the election.  The Treasury has even told us that it will spend $800 billion of it in September. Didn't say how, but you know how Trump loves to bray about the stock market. 

Get the inside dope from the outside dope at Liquidity Trader. 90 day risk free trial.  

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https://t.co/NHn1cbbx3f?amp=1

It was a scene familiar in American history: agents of the state conscripting armed white vigilantes to help violently suppress movements for racial justice and liberation. (“Cops and the Klan go hand in hand,” the common protest chant goes.) 

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This is exactly how the Nazis took control of Germany in 1933.  Rioting, violence, mobs. They always made it look like, or possible to blame the others, in particular the Jews. Now it's BLM and antifa, the second being a group which doesn't even exist.   

Against the backdrop of increasing disorder in the streets of America's cities, the stock market will keep rising.  

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