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There is no mystery. It's the Fed. And frankly, it's disingenuous for Schiller to pretend that he doesn't know why. Quantitative easing is working exactly as

by steven2012 12y ago

There is no mystery. It's the Fed. And frankly, it's disingenuous for Schiller to pretend that he doesn't know why. Quantitative easing is working exactly as the Fed had hoped. It's causing bond prices to be sky high, mortgage interest rates to be as low as they've ever been, the stock market to be sky high, house prices to be sky high, etc. Now, what happens when the Fed takes away its QE? No one knows for sure, but many speculate that all these bubbles will burst, because they are all artificially generated. Personally, I am going to be taking all my money out of the stock market some time next year, and wait for the crash in October 2015. Crashes usually happen around that time, and then hopefully the economy survives this second recession. Until then, the sky's the limit in terms of where Wall Street is going to push the stock market.

redwood 12y ago
Dangerous prediction. Could come this October
- iaw 12y ago
  Agreed. My speculation for a while has been by the end of 2015, it could be tomorrow.
reinier 12y ago
And with central banks holding so much equities, who will bail out the central banks if the stock market crashes? We’re getting closer to an international sovereign debt central bank crisis now that we’ve created all this sovereign debt and printed all this money. We’re getting closer to an international sovereign debt central bank crisis where we actually lose confidence in the central banks. Who’s going to bail them out? The answer is the IMF. The IMF will print SDRs and hand them out. Countries will swap them among themselves and re-liquefy the world. It’ll be highly inflationary. And after people lose confidence in the IMF? Who bails them out? The only thing standing behind the IMF, is gold. Although the IMF is the third largest holder of gold in the world, with close to 3000 tons. After US and Germany.

redwood 12y ago

Dangerous prediction. Could come this October

iaw 12y ago
Agreed. My speculation for a while has been by the end of 2015, it could be tomorrow.

reinier 12y ago

And with central banks holding so much equities, who will bail out the central banks if the stock market crashes? We’re getting closer to an international sovereign debt central bank crisis now that we’ve created all this sovereign debt and printed all this money. We’re getting closer to an international sovereign debt central bank crisis where we actually lose confidence in the central banks. Who’s going to bail them out? The answer is the IMF. The IMF will print SDRs and hand them out. Countries will swap them among themselves and re-liquefy the world. It’ll be highly inflationary. And after people lose confidence in the IMF? Who bails them out? The only thing standing behind the IMF, is gold. Although the IMF is the third largest holder of gold in the world, with close to 3000 tons. After US and Germany.