Fed "propping up the stock market"

[Warrenlm]

Re: Tsunami's Account Talk

Link is to a report about a recent PBS piece mentioning that the Fed sees its job as talking up and pushing up the market. We all knew that of course. Anyone think they will lose control in 2014? How? PBS Drops a Bombshell on the Federal Reserve

 

[tsptalk]

Re: Tsunami's Account Talk

Thanks for posting this. I copied the above post from another thread into this new thread for more visibility.

 

[MrBowl]

Re: Tsunami's Account Talk

Very interesting times. Many of us thought that the Fed was involved in trying to help the economy via the Wealth Effect. I'm glad the TSP has a very low cost to us because the scenario described in the story really bites.

Some argue, not to get political, that the Fed decided to take it upon themselves to pull us out of the depths of the Great Recession because they saw that the elected ones were not doing anything to help. Some argue that the Fed should be praised and commended for getting us where we are today and some argue that the Fed has done great damage.

My own opinion is that...we'll find out. It will be tough to unwind what the Fed has done, but they've been experts at pulling the dominos far enough apart to isolate each little problem without collapsing the whole system so far, and I can't honestly say that I know what path we go down from here.

This is a topic that will likely be with us for a long time. QE and zero percent interest for more than 5 years now! Is this the way that the Fed members will perceive their duties from now on?

 

[Birchtree]

Re: Tsunami's Account Talk

Remember that Janet is a dove and will continue to provide liquidity until some inflation returns - I praise the Fed.

 

[MrBowl]

Like you, Birch, I look fwd to more gains

 

[RealMoneyIssues]

Re: Tsunami's Account Talk

Remember that Janet is a dove and will continue to provide liquidity until some inflation returns - I praise the Fed.

Someone hasn't been grocery shopping recently...

 

[Warrenlm]

Fed Propping Up the Market

Another piece, this one referring to Greenspan's recent article, that asks the question but provides no evidence of a loss of control by the Fed. Could The Fed Lose Control Of The Frankenstein Economy It Has Created? | Zero Hedge

 

[Warrenlm]

Re: Fed Propping Up the Market

Finally some specifics from the gloom and doom?

“The Fed balance sheet has increased by 500 per cent in the last 5 years and a lot of it's garbage.”

“Inflation, Rogers says, has only been kept in check in the US by the country's shale gas discovery, putting a “dampener” on energy prices.”

--saw an article that said shale will peter out in 10 years…hmmmm..

Then he goes and does as usual….the crisis is coming, just not this year….

“For early 2014, Rogers is therefore long inflatable equities and neutral on gold, but longer term, he expects to short junk and government bonds and is ultra bullish on gold. “Gold will become one of the only refuges around,” he says.”
http://www.zerohedge.com/news/2014-01-04/jim-rogers-warns-bernanke-has-set-stage-feds-collapse

 

[Warrenlm]

Re: Fed Propping Up the Market

This video this morning of an interview with Achutan shows he's sticking to his guns. He believes that revisions in the future will reveal the recession started when he said...4Q12. He would not shake even under derisive questioning from Sorkin. He cites stats that show the real growth is so fractional that it can be easily erased by an adjustment in the future when real info is known. Under the great pressure that he's wrong because all the data shows he's wrong, one can infer he means that current thinking is based on an illusion--and remarks that it was previously recognized that the Fed was "targeting" the market. He cites Bullard's remarks long ago and also lists reality comments about the economy from the masses' perspective (which roughly translates to p*** poor). But Sorkin never asks him why he thinks the Fed could possibly fail. I think he said when questioned by Sorkin on his personal investments, TIPS. Here's why expert won't budge from recession call - CNBC

 

[jonfresno]

Re: Fed Propping Up the Market

This video this morning of an interview with Achutan shows he's sticking to his guns. He believes that revisions in the future will reveal the recession started when he said...4Q12. He would not shake even under derisive questioning from Sorkin. He cites stats that show the real growth is so fractional that it can be easily erased by an adjustment in the future when real info is known. Under the great pressure that he's wrong because all the data shows he's wrong, one can infer he means that current thinking is based on an illusion--and remarks that it was previously recognized that the Fed was "targeting" the market. He cites Bullard's remarks long ago and also lists reality comments about the economy from the masses' perspective (which roughly translates to p*** poor). But Sorkin never asks him why he thinks the Fed could possibly fail. I think he said when questioned by Sorkin on his personal investments, TIPS. Here's why expert won't budge from recession call - CNBC

Whether that's the intention, it's def. having that effect. What's that line from an Officer and a Gentleman, "I got nowhere else to go!" You lose money in CDs and the bond funds tanked. It's the mattress or the market.

I'm not sure if I watched the entire video. It was a short clip and it didn't get into his personal investments. Maybe I had to click on something to watch the full thing.

 

[Warrenlm]

Re: Fed Propping Up the Market

Yes, it was truncated. CNBC has a time limit on negative news.

 

[Birchtree]

Re: Fed Propping Up the Market

TINA, TINA, TINA and not Turner - There Is No Alternative. The dust cloud is forming in the distance and it won't be long before more pole sitters are eating hoof dust.