1 reply to this topic

[nimblebear]

Clearly the Fed has completely, utterly lost its marbles. In simple terms I'll tell you why: First and foremost the Fed is attempting to fight a headwind that truly has no business being fought. That is. The headwind of 10000 boomers a day retiring and not needed the homes, the consumables that they all bought for the past 3 decades or more. That dynamic alone in the form of an oversupply of too many homes that are lietrally too big and too unaffordable for the generations of millenials and gen x or y and z especially given the massive outsoruinf of all jobs, virtually guarantees not only less housing but a different kind of and much more affordable housing stock. That stock might be anything from mobile trailer parls to condo's or apartments but it certainly isn't the stock in which the vast majority of that $40 billion in mbs's the fed now proposes to purchase. Not only is the fed delaying the write offs, which would also likely sink a few thousand banks by no, but the Fed is delaying a real solution and real re-construction of a far more nimble American economy, one that is not dependent upon $400k single family homes, or the constriction needed to build such an economy. So so what if they are printing $3 triilion and throwing it at bad assets never to be repaid ? Assets that are worth less than 10 cents on the dollar ? He's saving banks, right, and saving the ceos and even Potus's own job ? Isn't that noble and worthy ? Well that all depends ? If american corporations wish to be hamstrung by this malinvestment, and don't ever want to be competitive again where they can attract workers who are talented and willing to be paid substandard wages, then I guess its ok. But if they want highly skilled workers who can also afford where these corporations wish to reside, and they want to wean themselves off the financially sick 70% of american consumers they depend upon, then Bernanke just made their problems 100 times worse for the next 2 to 3 decades. Bernanke just insured that America will be Greece in a far faster time, than greece became Greece, and it assured corporations will continue to send jobs, dollars, and investment overseas. The few idiots left who believe this isn't inflationary or are ok with it, because it appears we can avoid deflation, obviously are clueless that deflation is the wrong problem to target, and that stocks which remain propped and elavated aren't indications of a healthy and prospering economy given the underlying dynamics and lousy infrastructure that is debt burdened beyond any semblance of recovery. Ben and his puppets are very very sick men.

[CRUISENAL]

Amen to that! Alan

Clearly the Fed has completely, utterly lost its marbles.

In simple terms I'll tell you why:

First and foremost the Fed is attempting to fight a headwind that truly has no business being fought. That is. The headwind of 10000 boomers a day retiring and not needed the homes, the consumables that they all bought for the past 3 decades or more.

That dynamic alone in the form of an oversupply of too many homes that are lietrally too big and too unaffordable for the generations of millenials and gen x or y and z especially given the massive outsoruinf of all jobs, virtually guarantees not only less housing but a different kind of and much more affordable housing stock. That stock might be anything from mobile trailer parls to condo's or apartments but it certainly isn't the stock in which the vast majority of that $40 billion in mbs's the fed now proposes to purchase.

Not only is the fed delaying the write offs, which would also likely sink a few thousand banks by no, but the Fed is delaying a real solution and real re-construction of a far more nimble American economy, one that is not dependent upon $400k single family homes, or the constriction needed to build such an economy.

So so what if they are printing $3 triilion and throwing it at bad assets never to be repaid ? Assets that are worth less than 10 cents on the dollar ? He's saving banks, right, and saving the ceos and even Potus's own job ? Isn't that noble and worthy ?

Well that all depends ? If american corporations wish to be hamstrung by this malinvestment, and don't ever want to be competitive again where they can attract workers who are talented and willing to be paid substandard wages, then I guess its ok.

But if they want highly skilled workers who can also afford where these corporations wish to reside, and they want to wean themselves off the financially sick 70% of american consumers they depend upon, then Bernanke just made their problems 100 times worse for the next 2 to 3 decades.

Bernanke just insured that America will be Greece in a far faster time, than greece became Greece, and it assured corporations will continue to send jobs, dollars, and investment overseas.

The few idiots left who believe this isn't inflationary or are ok with it, because it appears we can avoid deflation, obviously are clueless that deflation is the wrong problem to target, and that stocks which remain propped and elavated aren't indications of a healthy and prospering economy given the underlying dynamics and lousy infrastructure that is debt burdened beyond any semblance of recovery.

Ben and his puppets are very very sick men.