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Because central Banks have been buying up securities to avoid bankrupting the government during the 4st 4 years of their party's president. Then they had to ext
by waps 12y ago
Because central Banks have been buying up securities to avoid bankrupting the government during the 4st 4 years of their party's president. Then they had to extend this to avoid hitting 15% unemployment by hitting the next recession when unemployment was already at 9-10%.
Then those %$##@$$% "job-creators" only went halfway : they hired people, but not enough and only temps. So now the Fed is buying securities, pushing up Schiller's P/E, to create employment pressure before hiking rates back up and presumably create the mother of all crashes by selling 2+ trillion in securities on the open market.
Now is the quiet before the storm. Best guesses seem to be dollar will appreciate for half a year or so, stock market stalling or at least slowing down, then stock market will crash, then another 3-4 months of dollar appreciation, then the Fed will crash the dollar again.
Interesting times ahead.