Early voting in Georgia. On the 20th of October this old Goldwater conservative voted against both Donald Trump and Hillary Clinton by casting my vote for Gary Johnson. Neither Trump or Clinton belong within a million miles of the Oval Office.
More like by pumping up stock prices, which are being artificially inflated by widespread buybacks, high-frequency trading, and trillions of dollars in Fed cash. Look at your graph real closely, and then consider why that graph may not be saying a good thing about the economy.The market isn't going through the roof because of Fed policies. It's because corporate profits are through the roof, mostly as a result of squeezing employees as hard as they can during bad economic times.
Yes, actually. It suggests they aren't spending money because they either have nothing to spend it on or are hoarding cash out of concern that they may need it soon.Companies are also holding record amounts of cash. Is that also a "negative indicator?" U.S. Firms Hold Record $1.64 Trillion in Cash With Apple in Lead - Bloomberg
See above."Rigged" by whom?
Actually, pretty much everyone agrees there were other reasons for bad indicators and that weather does not come close to explaining it all. The pent-up demand is probably true, which is why some of the indicators look better right now.Which "meaningful indicators" are you talking about? The Conference Board's LEI has been rising for 3 months in a row. Pretty much everyone understands that Q1 got hammered by an awful winter, and it is likely to have produced some pent-up demand.
Oh come, come, the bailouts of big money institutions and moral hazard was Long-Term Capital Management and the housing bubble started getting blown up in the late 90's to cover for the dotcom bubble.What fantasy is this?
Hyperinflation is not something a central bank aims to achieve. It is a function of mismanagement. The Fed is not stupid enough to get the U.S. into that sort of mess, in my opinion, which is why I do not think they will do much about another downturn. All they could do in the event of another serious downturn is print money like crazy, which could easily lead to hyperinflation and hyperinflation means default."Yes" in that we are still in a bit of a liquidity trap, which means the Fed can continue actions like QE without causing inflation any time soon -- in the same way that they have done so for many years now, without producing the "hyperinflation" expected by people who don't understand economics well.
"No" in that the Fed can't really do much more at this point if the economy takes a serious downturn. Inducing "hyperinflation" is obviously something no US central bank will do, at least not during our lifetimes. We are also a long, long way from any sort of default because of anything other than legislative dysfunction.
"For what is Evil but Good-tortured by its own hunger and thirst?"
- Khalil Gibran
Last edited by jmotivator; 05-30-14 at 06:47 AM.
Give a man a fish and he eats for a day. Teach a man to fish and he stops voting for the Free Fish party.