7 ms·

^ To add to this I'd lay say the over-valuation(s) are a side-effect of our monetary policy being in never-ending "stimulus" mode. On Intel I think the "everyt

^ To add to this I'd lay say the over-valuation(s) are a side-effect of our monetary policy being in never-ending "stimulus" mode. On Intel I think the "everything is going mobile" is PR for investors, the PC market doesn't have any foreseeable growth potential atm.

mizchief2 11y ago
Why make things when you can borrow money for nothing and move paper around for profit.
cft 11y ago
The stimuls mode is a permanent regime now. It's good in the short term, but I do not know if anybody understood mid- and long-term consequences of this new permanent mode.
- wuliwong 11y ago
  There is nothing mysterious about the short, mid or long term effects of artificially low interest rates and quantitative easing. edit Here's a link to read about it. https://mises.org/library/unseen-consequences-zero-interest-rate-policy https://mises.org/library/unseen-consequences-zero-interest-...
- criley2 11y ago
  "The stimulus mode is a permanent regime now" As a general FYI to those reading -- please fact check before commenting. The Federal Reserve's quantitative easing program ended on Oct 29th, 2014 (538 days ago!) It is difficult to assert that a program which ended over 500 days ago is permanent. Additionally, one may be willing to assert that "ZIRP is permanent regime now" too, to tack onto the culture that central banking has entered a new era. For anyone who did not see that news, ZIRP (zero interest rate policy) ended on Dec 15, 2015 with a rise, and is currently believed to rise again at the next meeting.
  - cft 11y ago
    Just take things in in a perspective, not just based on the latest quarter news: http://b-i.forbesimg.com/jessecolombo/files/2014/01/united-states-interest-rate.png http://b-i.forbesimg.com/jessecolombo/files/2014/01/united-s... http://moneymorning.com/wp-content/blogs.dir/1/files/2015/09/9-16-15-u-s-interest-rate-history.png http://moneymorning.com/wp-content/blogs.dir/1/files/2015/09... http://www.naic.org/images/capital_markets_archive/2013/130521_graph1.png http://www.naic.org/images/capital_markets_archive/2013/1305... whether they do a token 0.5% hike (they probably won't), it's obvious that something very basic has changed, and quite likely irreversibly.
    - bduerst 11y ago
      Why did you link three pictures of the same graph? They also don't support your hypothesis that something has changed irreversibly. Raising the interest rate more than 0.5% would have likely had a negative impact. It's very likely the Fed will raise it again later this year.
  - tma-1 11y ago
    Yes it's permanent. Interest rates are still super low, meaning companies can still take on debt to buy back their stock. The effect of quantitive easing remains until interest rates start going up and the Fed start buying government bonds from the banks.
    - dgemm 11y ago
      Interest rates have already started going up.
      - turnip1979 11y ago
        They went up once and the fed is signaling a lot of caution. The earlier analyst consensus was 4 hikes this year .. it is down to 2. The latest commentary I'm hearing says normal rates by 2019 .. which is psycho IMHO.
    - 11y ago

mizchief2 11y ago

Why make things when you can borrow money for nothing and move paper around for profit.

cft 11y ago

The stimuls mode is a permanent regime now. It's good in the short term, but I do not know if anybody understood mid- and long-term consequences of this new permanent mode.

wuliwong 11y ago
There is nothing mysterious about the short, mid or long term effects of artificially low interest rates and quantitative easing. edit Here's a link to read about it. https://mises.org/library/unseen-consequences-zero-interest-rate-policy https://mises.org/library/unseen-consequences-zero-interest-...
criley2 11y ago
"The stimulus mode is a permanent regime now" As a general FYI to those reading -- please fact check before commenting. The Federal Reserve's quantitative easing program ended on Oct 29th, 2014 (538 days ago!) It is difficult to assert that a program which ended over 500 days ago is permanent. Additionally, one may be willing to assert that "ZIRP is permanent regime now" too, to tack onto the culture that central banking has entered a new era. For anyone who did not see that news, ZIRP (zero interest rate policy) ended on Dec 15, 2015 with a rise, and is currently believed to rise again at the next meeting.
- cft 11y ago
  Just take things in in a perspective, not just based on the latest quarter news: http://b-i.forbesimg.com/jessecolombo/files/2014/01/united-states-interest-rate.png http://b-i.forbesimg.com/jessecolombo/files/2014/01/united-s... http://moneymorning.com/wp-content/blogs.dir/1/files/2015/09/9-16-15-u-s-interest-rate-history.png http://moneymorning.com/wp-content/blogs.dir/1/files/2015/09... http://www.naic.org/images/capital_markets_archive/2013/130521_graph1.png http://www.naic.org/images/capital_markets_archive/2013/1305... whether they do a token 0.5% hike (they probably won't), it's obvious that something very basic has changed, and quite likely irreversibly.
  - bduerst 11y ago
    Why did you link three pictures of the same graph? They also don't support your hypothesis that something has changed irreversibly. Raising the interest rate more than 0.5% would have likely had a negative impact. It's very likely the Fed will raise it again later this year.
- tma-1 11y ago
  Yes it's permanent. Interest rates are still super low, meaning companies can still take on debt to buy back their stock. The effect of quantitive easing remains until interest rates start going up and the Fed start buying government bonds from the banks.
  - dgemm 11y ago
    Interest rates have already started going up.
    - turnip1979 11y ago
      They went up once and the fed is signaling a lot of caution. The earlier analyst consensus was 4 hikes this year .. it is down to 2. The latest commentary I'm hearing says normal rates by 2019 .. which is psycho IMHO.
  - 11y ago