UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: notehound Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 489891  
Subject: Re: "Investors Avoid Equity Market" Date: 10/3/2012 9:47 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
...the government will be forced to raise interest rates...

Who is going to force them to raise interest rates? If the Fed can buy 72% of the long bonds, the CTRL+P function will enable them to buy a mere 28% more.

No need to worry about anyone forcing the US to raise rates until some time after Japan is forced to do so. ZIRP has stuck in Japan for 20 years and no one has succeded in challenging their central bank. Our central bank is even more powerful than Japan's. If no one can challenge Japan, then fewer still dare challenge the all-powerful Fed.

The bond vigilantes are dead and their ashes have been scattered by the most powerful central planners in world history. The Fed saved us from what could have been another Great Depression - and they can do it again and again.

The banks don't need help from depositors. Dependency upon savers for funding is a relic of banking history. Asset sales to the all-powerful Fed and interest on reserves is all they will ever need.

ZIRP is brilliant. Risk is an antiquated concept. Prices of assets do not waiver when risk is removed from the equation.

There is no risk any more because the Fed can negate it by mere click of a mouse.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.