Winding down QE

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Vonz90
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Winding down QE

Post by Vonz90 »

Precision
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Re: Winding down QE

Post by Precision »

If only someone had pointed that out. Damn dufus previous "President" and his anointed ... the herpes that keeps erupting
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D5CAV
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Re: Winding down QE

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I'm so surprised! Dealing with a debt problem by getting more debt has worked out ... never.

Remember that Secretary of Treasury Paulson worked for Bush 2. When Lehman went under, he was all about letting the market clean up its garbage. When Bear Stearns went under, same.

When it was Goldman Sachs turn, which coincidentally had just gotten some "rescue" money from Warren Buffett, and which, coincidentally, Paulson spent his career rising to President and CEO, suddenly the sky was falling and "Congress had to act!".

Stupidity is non-partisan. $1.2 billion of TARP was a creature of Bush 2. It's true that BHO doubled down with another $1.5 to $2.0 trillion of "Porkulus" spending in 2009, but let's be clear that our previous President wasn't the only dufus.

Also, keeping interest rates at close to the zero-bound vs. something like 6% is effectively transfer of another $2 or $3 trillion per year to asset holders (the top 1%), from savers (the bottom 99%).

AOC and Bernie are blowback from this. If us.gov can provide a few $trillion per year to the top 1%, why not a few $trillion for the bottom 99%?

Until the whole thing collapses.
None are more hopelessly enslaved than those who falsely believe they are free.” Johann Wolfgang von Goethe
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Vonz90
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Re: Winding down QE

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I was against it at first, but the data convinced me that the original QE (or something like it) was necessary due very unusual set of deflationary pressures going on.

The problem being of course that rarely is any government program wound down when the need is over. So on it went.

I actually think it is a good sign that they are winding it down now.
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D5CAV
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Re: Winding down QE

Post by D5CAV »

Vonz90 wrote: Tue Mar 19, 2019 11:47 pmI actually think it is a good sign that they are winding it down now.
Nope. Fed just came out and said no more tightening.

Peter Schiff explains it: https://www.youtube.com/watch?v=bP49DHHsIO8

A few years ago, when they started QE, he had a couple of great quotes which he recycles periodically:

"QE is like a monetary roach motel, you can check in, but you can't check out"

"We're going to have more QEs than we had "Rocky" movies"

I'm going to enjoy the show.
None are more hopelessly enslaved than those who falsely believe they are free.” Johann Wolfgang von Goethe
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Vonz90
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Re: Winding down QE

Post by Vonz90 »

D5CAV wrote: Fri Mar 22, 2019 12:23 am
Vonz90 wrote: Tue Mar 19, 2019 11:47 pmI actually think it is a good sign that they are winding it down now.
Nope. Fed just came out and said no more tightening.

Peter Schiff explains it: https://www.youtube.com/watch?v=bP49DHHsIO8

A few years ago, when they started QE, he had a couple of great quotes which he recycles periodically:

"QE is like a monetary roach motel, you can check in, but you can't check out"

"We're going to have more QEs than we had "Rocky" movies"

I'm going to enjoy the show.
I don't watch videos (or TV) if he has something to read, I might look at it.

In general though, if you ignore the change in deflationary situation, I suppose it seems weird. But why would you? Huge amounts of US dollars go offshore never to return (at least so far) and other structural changes have made this is a very different monitary world than It was a few years ago. Not saying they are right. But it isn't surprising that the reactions are different.
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