Fed Ends Bond Buying Scheme--Dow Up 1.4%

Discussion in 'News / Current Events' started by InTheLight, Oct 30, 2014.

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  1. InTheLight

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    Once again Wall Street has reacted favorably to news that bond buying has been reduced, this time it has been reduced to nothing. The quantitative easing by buying bonds has ended. The Dow is up 1.4% in afternoon trading.

    There are some on the board that said the bond buying program was driving gains on the stock market, yet every time the program has been trimmed in the past year or so, the market has gone up. Same thing today.
     
  2. Crabtownboy

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    Good indication of the improving economy. The general public is slow to pick up on that fact. But that is normal.

    Shows they know little about the economy and what does or does not drive the market. It was simply a tool for some to criticize Obama ... nothing new there. Wonder what they will find to criticize him for the market going up now?
     
  3. Revmitchell

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    So are you suggesting it was not driving gains in the stock market?
     
  4. InTheLight

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    I'm saying it was not the only factor, or even the biggest factor in stock market gains. I considered it a tailwind. Some here said the only thing driving it or the biggest factor driving it was the bond purchase program.
     
  5. Crabtownboy

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    I believe you are correct. Unemployment is down and that means more money for people to spend. Profits are up and that makes investors and companies happy. The ending of the buying of bonds is a strong indicator of an improving economy.
     
  6. Revmitchell

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    Some here said it was the "only thing"? Really? That is the words they used.
     
  7. InTheLight

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    Profits are up. Look at Mastercard today. Earnings per share beat all estimates by 11.5%. Visa reported a jump in profits as well. People are starting to spend.

    We had been hearing about the Fed tapering the bond buying program for months and months, so when it actually started happening it was not a surprise.

    Initial GDP reports for the third quarter is 3.5%. I bet that gets revised upwards just like the 2nd quarter.
     
    #7 InTheLight, Oct 30, 2014
    Last edited by a moderator: Oct 30, 2014
  8. Revmitchell

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    The very nature of the bond buying program tells us that is was a major contributor to the stock market.
     
  9. InTheLight

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    Yeah, you keep saying that. But every time the bond buying decreased the market went up. That kind shoots a hole in your theory.
     
  10. Revmitchell

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    uH, no it doesn't. If it was not a major contributor then it was a complete waste of time. Inconsequential, irrelevant. Etc.
     
  11. Crabtownboy

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    You really have no clue, but you do stick to your guns regardless of how wrong they are.

    You need to take a few college courses in economics and also the stock market.
     
  12. poncho

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    Mark this day on your calendars. The Dow is at 16974, the S&P 500 is at 1982 and the NASDAQ is at 4549. From this day forward, we will be looking to see how the stock market performs without the monetary heroin that the Federal Reserve has been providing to it. Since November 2008, the Fed has created about 3.5 trillion dollars and pumped it into the financial system. An excellent chart illustrating this in graphic format can be found right here. Pretty much everyone agrees that this has been a tremendous boon for the financial markets. As you will see below, even former Fed chairman Alan Greenspan says that quantitative easing was "a terrific success" as far as boosting stock prices. But he also says that QE has not been very helpful to the real economy at all. In essence, the entire quantitative easing program was a massive 3.5 trillion dollar gift to Wall Street. If that sounds unfair to you, that is because it is unfair.

    So why is the Federal Reserve finally ending quantitative easing?

    Well, officially the Fed says that it is because there has been so much improvement in the labor market...

    But that is not true at all.

    Read More At: http://theeconomiccollapseblog.com/archives/from-this-day-forward-we-will-watch-how-the-stock-market-performs-without-the-feds-monetary-heroin


    Two headlines came across my screen today, which taken together pretty much sum up the effects of policy decisions made by Central Bankers and politicians since the financial crisis. The financial oligarchs got bailed out, and the rich got richer due to decisions made by “leaders” around the globe. As such, the entire planet has now been transformed into a neo-feudal tinderbox. Myself and countless others warned all the way back to 2008 that this is what would happen, and here you have it.

    Let’s first examine the results from Oxfam’s report on the billionaire growth spurt. I hope all 1,645 of you have sent thank you notes to the patron saint of oligarchy: Ben Bernanke. From NBC:


    The super-rich club has become less exclusive, with the amount of billionaires doubling since the financial crisis, according to a report from global charity Oxfam. There were 1,645 billionaires globally as of March 2014, according to Forbes data cited in the Oxfam report, up from 793 in March 2009.

    The report ‘Even it Up: Time to End Extreme Inequality’ noted that the world’s richest 85 people saw their wealth jump by a further $668 million per day collectively between 2013 and 2014, which equates to half a million dollars a minute.

    Unsurprisingly, this reverse Robin Hood policy of Central Banks and governments the world over has also resulted in increased poverty. Rob from the middle class and give to the oligarchs. Here’s what you get…

    Read More At: http://libertyblitzkrieg.com/2014/10/30/child-poverty-jumps-by-2-6-million-in-developed-world-since-2008-while-number-of-billionaires-doubles/
     
    #12 poncho, Oct 31, 2014
    Last edited by a moderator: Oct 31, 2014
  13. InTheLight

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    There are some people here that see the world the way they want to see it, not the way it really is.
     
  14. poncho

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    You can say that again!
     
  15. Revmitchell

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    MY economics is fine. However, yours is based on Kenysianpolitics and has no credibility. Try dropping your DNC talking points and post with integrity.
     
    #15 Revmitchell, Oct 31, 2014
    Last edited by a moderator: Oct 31, 2014
  16. Crabtownboy

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    Your English spelling is rather poor. How about trying to become more intelligent and rational?
     
  17. InTheLight

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    Good idea! How about you drop your RNC talking points as well? Hmmm....??
     
  18. Revmitchell

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    I see so now you have just taken on Zaacs debate tactics of just saying the opposite when you have nothing else to contribute.
     
  19. Crabtownboy

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    Oh Rev. you bring so many laughs into my life and I do appreciate them. Laughter is good for our emotional life.

    Yes, I'd say you should stop using Republican talking points if you do not want others to use other talking points.

    Also, leave off the hateful insults. They are not becoming of of someone who says they are a minister.
     
  20. Revmitchell

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    Further, either you do not know about economics or you just tried to discover a way to level a personal attack. The reason I say this is because the bond buying program has never been used in this manner before. Economists have no idea what the long term repercussions of it actually will be. There is a reasonable debate on both sides of the issue.

    While it is true that the stock market is holding at a level, there are other factors that have come onto the scene recently such as low energy costs.

    So the idea that someone who doesn't agree with crabby about economics needs to take some classes is yet another lie perpetuated by you on this board. But see, that is all the debate knowledge you have. You are notorious for them and everyone knows it. You go ahead though and keep showing your true colors. It's quite amusing.
     
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