Gator Country

**Burke** · 02-20-2013, 02:24 PM

The govt wants money. It sells bonds to banks that create money out of thin air (via fractional reserve banking) to buy them. The Federal Reserve then creates money out of thin air to buy the bonds from the banks (Quantative Easing), and the banks use that money to buy stocks.

And the stock market soars.

How long do you think this crap can go on?

And what will happen to the stock market if the Fed stops printing money?

More importantly, what can possibly happen that will turn things around?

Banks can't give money away to businesses because the govt is so hostile to the business community no one wants to take a risk. If they go broke, they lose. If they make profits, the govt is there with its hand, er gun, out.

Everyone knows that the bond market is a huge bubble caused by Bernanke's bond buying and that it will eventually crash.

The only thing they can do is print more and more money.

So, what's going to happen first, a crash of the bond market or a crash of the dollar?

And can the stock market be far behind?

Then the whole economy.

Here and around the world.

The sky really is going to fall.

thedyc09 · 02-20-2013, 02:57 PM

Seems to me that the Fed keeping interest rates at historic lows (seemingly without end) + inflation is forcing a lot of people to think the only way to get a return on their investments is to put it in stocks - guess who's going to win that gamble? Oligarchs 1, Middle Class 0.

**gatorman_07732** · 02-20-2013, 03:03 PM

Quote:

Originally Posted by thedyc09

Seems to me that the Fed keeping interest rates at historic lows (seemingly without end) + inflation is forcing a lot of people to think the only way to get a return on their investments is to put it in stocks - guess who's going to win that gamble? Oligarchs 1, Middle Class 0.

Yep, they react very positively to low interest rates. Trading volume is way down sind 2008 because people don't trust it.

**G8trGr8t** · 02-20-2013, 03:20 PM

companies of $500M and up are getting cheaper money, smaller companies are struggling to get money under 10%. Just more of the push for bigger, centrally planned companies monopolizing the economy. Combine the discounted $$ that bigger companies have access to with the cost of regulatory compliance and these policies are combining to eliminate the small to midsize companies. As more and more mergers and acquisitions ocur, more and more people are going to be losing jobs.

USAir-AA, office depot-office max, and other M & A activity is creating bigger companies that can be easier controlled by a central planning agency. America is changing to make it harder for people to create and develop small to mid size companies and the voters are letting/making it happen.

madgator · 02-20-2013, 03:23 PM

Quote:

Originally Posted by gatorman_07732

Yep, they react very positively to low interest rates. Trading volume is way down sind 2008 because people don't trust it.

we are watching the final destruction of american wealth.....onward to the new world order!

I have no doubt that part of the plan also involves a whole bunch of chaos that is going to result in the elimination of a people......also a stated part of the plan.

but we're all crazy because according to Paul Krugman the only problem is that the government is not spending enough! we are not printing enough!

**G8trGr8t** · 02-20-2013, 06:34 PM

Fed hinted at slowing down bond purchases today and bottom fell out. Note this wasn't a formal policy announcement and certainly not a discussion about totally stopping the presses but just a few members of the fed discussing slowing down the presses and the market dumped.

How can US talk to Japan about devaluation while we print at full speed? Maybe the rest of the G20 pitched a fit about US too.

**ThePlayer** · 02-20-2013, 06:40 PM

Unfortunately, we're the best horse in the glue factory.
But the equity party is about over...5% more at the most.
Some of these companies are being valued at 25 times earnings.
Ridiculous at the outset.

**ncgatr1** · 02-20-2013, 07:18 PM

Time for our resident liberal economic geniuses to weigh in on this. There seems to be a lot of smoke out there that this market could correct by up to 90%. I don't think it will be that severe but the chickens are coming home to roost, and our perennial commander in chief crusader will deflect this blame too. It seems the unemployment may go back over 8% and we are inching back to $4.00 a gallon for gas. I can't wait until we see the full impact of Obamacare. The stupid by choice should be real happy in a few years.

**Burke** · 02-20-2013, 10:02 PM

When people are free to produce and trade and keep the product of their labors, you have fabulous prosperity.

When you have looters in Washinton who are exploiting them, you have decline and deprivation.

Simple as that.

PITBOSS · 02-20-2013, 10:21 PM

Quote:

Originally Posted by Burke

....So, what's going to happen first, a crash of the bond market or a crash of the dollar?

And can the stock market be far behind?

Then the whole economy.

Here and around the world.

The sky really is going to fall.

with end-of-the-worlders its always just around the corner. so never any proof or confirmation. its just you-wait.

**G8trGr8t** · 02-20-2013, 10:55 PM

http://money.msn.com/business-news/a...20&id=16133361

Quote:

NEW YORK (Reuters) - Stocks fell the most in three months and a key gauge of market volatility spiked on Wednesday after minutes from the U.S. Federal Reserve's most recent meeting suggested the central bank may slow or stop buying bonds sooner than expected.

The minutes from the Fed's January meeting showed many officials voiced concern last month over potential costs of more asset purchases, suggesting that the program, known as QE, may slow before the pickup in hiring it was intended to deliver.

"What Wall Street wants to hear is an absolute sign that the Fed will continue with QE for the indefinite future. When it says we may end it faster, that just raises the uncertainty, and the market hates that," said Todd Schoenberger, managing partner at LandColt Capital in New York.

Wednesday's slide marked a rare return of nervousness to markets after their solid march higher this year. The CBOE Volatility index , or the VIX, a measure of investor fear, jumped 19.3 percent - the biggest daily gain for the VIX since November 2011.

meanwhile gas is pushing $4

madgator · 02-20-2013, 11:44 PM

Quote:

Originally Posted by G8trGr8t

http://money.msn.com/business-news/a...20&id=16133361

meanwhile gas is pushing $4

read that article and tell me again that Obama has done nothing but create another bubble economy

**Burke** · 02-21-2013, 12:17 AM

No one can predict with certainty when the collapse will occur. But things are bad enough now that it could happen at any time.

I don't claim to be that knowledgeable, and if I can see it, pretty soon everyone will be seeing it.

Then this house of cards is going to fall.

Perhaps my outlook is skewed by my experience as a lawyer. But most of the time, when things look bad, you are seeing only the tip of the iceberg.

Know someone with a "little " drug problem? It's probably much worse than you know.

People are addicted to govt spending problems, and its worse than most realize, I believe.

PIMking · 02-21-2013, 12:35 AM

It's all bush's fault, or the Republicans, I'll ask my fiance

PSGator66 · 02-21-2013, 08:13 AM

With reduced pay checks and high gas prices we will all suffer.

fredsanford · 02-21-2013, 08:15 AM

These predictions of doom have been coming since 1/20/09.

Actually, they are very similar to ones that started 1/20/93 and were parroted for 8 years. We saw how that turned out.

Chicken littles all.

**gatorman_07732** · 02-21-2013, 08:20 AM

Quote:

Originally Posted by fredsanford

These predictions of doom have been coming since 1/20/09.

Actually, they are very similar to ones that started 1/20/93 and were parroted for 8 years. We saw how that turned out.

Chicken littles all.

Well there is a lack of trust in general from the public as exhibited by the trading volume.

**reformedgator** · 02-21-2013, 08:22 AM

Ask the middle class of these past 4 years. To them, the sky probably feels like it has fallen on their heads.

**theorangebluewinagain** · 02-21-2013, 08:29 AM

I want a crisis yesterday. Hopefully Jappan and Europe crash soon. If the Washington folks watch it happen over there and then do nothing to fix things here then we need to remove them all either with our votes or by force.

**Burke** · 02-21-2013, 10:03 AM

What reason is there for optimism?

All of a sudden businessmen in this country are going to start investing, etc., to support Obama's welfare bum constituency?

The country is beyond the tipping point.

It took a war ( or really, FDR croaking) to get us out of the Great Depression.

What's going to happen this time?

A war with nukes?

What?