Stock market surges

[FastMan]

Today, on the news that the fed plans to buy up $40 billion of mortgages each month, without let up, until the economy starts churning again.

What are your thoughts on the move?

[Irving]

Can you provide a link or something more specific about what the plan is?

My kneejerk reaction is that when people yammer about wanting people with business experience in government, this is exactly the kind of thing they are asking for.

[FastMan]

Here you go, Irving:

http://www.bloomberg.com/news/2012-0...ach-month.html

http://www.washingtonpost.com/blogs/.../13/qe3-is-on/

[Great-Kazoo]

It's a false surge based on bernake saying they are printing more money, 1.5 months before the election.
Nov 10-dec31st when the market wakes up, you will need a plunger to clear your toilet, from all the shit they've been feeding us.

[sellersm]

Not quite a duplicate, but def. related:

discussed here as well

[FastMan]

It's a false surge based on bernake saying they are printing more money, 1.5 months before the election.
Nov 10-dec31st when the market wakes up, you will need a plunger to clear your toilet, from all the shit they've been feeding us.

My thinking too, though I think the make believe joy ride will carry on a bit longer than you do. I'm riding the wave right now, which is fun, just will have to be ready to jump at the first sign of shore approaching. Interesting thing is, gold surged too today. Those running that up know what this spells down the road. When reality sets in, gold will keep going.

[ChunkyMonkey]

Each dollar loaned out by the Fed Reserve = 10 dollars available (created out of thin air) for your local banks in turn to loan out to you. We'll see inflation soon enough.

[Sawin]

My thinking too, though I think the make believe joy ride will carry on a bit longer than you do. I'm riding the wave right now, which is fun, just will have to be ready to jump at the first sign of shore approaching. Interesting thing is, gold surged too today. Those running that up know what this spells down the road. When reality sets in, gold will keep going.

Don't be fooled guys.... the reason for the observed surge was not a mad rush to buy stocks, precious metals, etc by the masses. The surge in tickers was due to the value of the dollar plummeting, which effectively makes everything worth more in dollar terms. The "wave" you speak of is nice for %'s in your portfolio, but when it comes time to start withdrawing, and the extra dollars you get out can't buy jack-squat, what good did it do?

I stand by my previously mentioned opinion that we would all be wise to use whatever discretionary spending we have available, to purchase useful products now. Especially those that will appreciate in value and utility as the economics of our country falter.

[FastMan]

but when it comes time to start withdrawing, and the extra dollars you get out can't buy jack-squat, what good did it do?

Depends what you do with the cash once you liquidate the equity holdings. In the meantime, as you hold your positions, your dollar count is going up more than the value of each of them is dropping. Winning.

If you just hold onto the cash after liquidating, then you will start losing again.

I stand by my previously mentioned opinion that we would all be wise to use whatever discretionary spending we have available, to purchase useful products now. Especially those that will appreciate in value and utility as the economics of our country falter.

I actually agree with doing some of that, for the very reason you spell out. I've been doing it.

[FastMan]

Each dollar loaned out by the Fed Reserve = 10 dollars available (created out of thin air) for your local banks in turn to loan out to you. We'll see inflation soon enough.

Sounds kind of like doing the same dumb old stuff that got us into this mess all over again, don't it? Except a bit worse. This time the mortgages on over priced properties, are being bought up directly with our money, and we're getting paid squat interest rates for holding the trash.