So when will the sharemarket crash in 2014?

[Brian d marge]

Quantitative easing: http://youtu.be/ohKQP_wSO9k

the key word u used is paper . .see japan for the toxic shyt they have been buying

and can you see the problems . .

and inflation is ? the reduction of the purchasing power of ya dollar

look at at the purchasing power of the yen . . .120 at the mo or near abouts
oh and hows that stock market . ,

hmmmmmmm one wonders which banks have access to this cheap money

just some thoughts

[Winston001]

Japan is an odd case and only thrives because of the collective culture which absorbs hardship. Business failure on a public scale is not acceptable so the entire economy soaks it up. For that reason Japan has been in a kind of suspended economic recession since 1995. And is still the world's third strongest economy.

Gotta respect that hard as it must be on the salary-man.

[Brian d marge]

Japan is an odd case and only thrives because of the collective culture which absorbs hardship. Business failure on a public scale is not acceptable so the entire economy soaks it up. For that reason Japan has been in a kind of suspended economic recession since 1995. And is still the world's third strongest economy.

Gotta respect that hard as it must be on the salary-man.

yes but those economic fundimentals still apply........ without money being destroyed for example loan repayment the supply must increase and
the puchasing power of the currency is eroded
the example you gave is the reason why japan is still trading as most of the debt is held by the loyal locals and the repayment is still within japans means
if it , the cost of the debt hits 4% we are screwed
if the debt was held outside of japan the imf would be asset buying
now this bit im not 100% on the qe in japan due to its full employment is aimed at prices whereas in America its resource orientated how and why this is enacted im not sure

one thing is for sure qe is uncharted territory and thats not a good place to be in

[Ocean1]

Exactly as Ocean says.

Close.

Closer: http://www.financialsense.com/contri...oney-inflation

"In speaking with investors I hear time and time again that the Fed's relentless printing of money is increasing the supply of dollars, which will result in massive inflation, if not hyperinflation. There are problems with this simplified line of reasoning.

It may come as a surprise, but when the Fed creates money, this new money does not increase the amount of money in the economy (there are some minor exceptions to be detailed later). Instead, the new money increases the size of the Fed's balance sheet. The impact to the economy has to do with the composition of the money supply only."

[Brian d marge]

Close.

Closer: http://www.financialsense.com/contri...oney-inflation

"In speaking with investors I hear time and time again that the Fed's relentless printing of money is increasing the supply of dollars, which will result in massive inflation, if not hyperinflation. There are problems with this simplified line of reasoning.

It may come as a surprise, but when the Fed creates money, this new money does not increase the amount of money in the economy (there are some minor exceptions to be detailed later). Instead, the new money increases the size of the Fed's balance sheet. The impact to the economy has to do with the composition of the money supply only."

good link

ta for that

read down towards the end and as Ive pointed out
money on a balance sheet is destroyed when a loan is repaid
here we just have an liquidity swap .... someone's balance sheet is getting bigger

in this case the article points out that the fed is outside the economy..hmmmmmm is it ? one wonders ......

what is the make up of these assets the fed is buying is what Im thinking

another thing is that after 2008 (sorry.,....October 3, 2008, the Emergency Economic Stabilization Act) the fed started paying interest on the excess reserves it held , . .so a bank with cash whose sole purpose in life is to make profit through money movement
is going to sit on a pile of cash . ,

not

Also ... (snip)

QE has potentially severe implications for inflation, but not directly from the QE itself. Instead the inflation will come as a result of a dramatically increased total money supply resulting from bank lending. QE does enable more bank lending, but the lending must take place for the total money supply to grow. A follow-up to this column will examine bank lending in more detail. For now, I will leave it at this: Bank lending is dismal, which is why the total money supply has not increased as much as anticipated. The money which the Fed is making available for banks to lend is not being lent out, and is instead working its way into asset prices and accumulating in the reserve accounts of member banks. If and when that money begins to flow out as loans - then we will need to be acutely aware of inflation showing up on our doorstep.


Snip;
It's more accurate to say that the Fed is "creating" money, not printing it. And to this statement Bernanke will nod his head in agreement. When the Fed creates money, it does so digitally by increasing the balances of the reserve accounts that are held at the Fed by its member banks.

so you will see banks with more liquidity lending . as that tis what banks do . . .

Remember that chart.....

The blue area represents low liquidity money and credit (such as bonds, IRAs, 401Ks etc.) and the yellow area represents high liquidity money and credit - which is the portion of the total money supply that is immediately available for lending, investing or to chase goods and services.

hey hows that stock market
house price
yen
motorbike prices,.....
etc
hmm one wonders

Closest;



Stephen

[scrivy]

So......... is this the beginning?😕

[ellipsis]

..............

[oldrider]

So......... is this the beginning?😕

It will thrash around like a rabbit with a weasel up it's arse just before it finally collapses so watch for wildly erratic patterns! - Then buy a new bike!

[sidecar bob]

So......... is this the beginning?😕

Fuck knows, but I did pretty mint out of the sharemarket since this thread started.
It's now in property & that's doing ok, so the sharemarket can do whatever it wants to now.

[mashman]

It’s Not Coming It’s Here: Evidence For an Unstoppable Catastrophic Nightmare—There Is Zero Time Left!

[Voltaire]

It’s Not Coming It’s Here: Evidence For an Unstoppable Catastrophic Nightmare—There Is Zero Time Left!

Russian double hits a new low as oil prices plunge

Is the Dooble in Trouble?

[mashman]

Is the Dooble in Trouble?

Had a chuckle at that too... I thought they meant vodka measure though . Who will survive, the govt or the bank?

[Voltaire]

Had a chuckle at that too... I thought they meant vodka measure though . Who will survive, the govt or the bank?

The Chinese look to have done the property thing in China then jumped on the Stock Market and as they were able to move money offshore global property.
Given the Chinese economy is slowing and the sharemarket is being propped up by Govt decree you would have to wonder how long the 'overseas' money can stay here.
Are the Aussie banks in good shape..? The CBA had a good year.
If there is a crash it will probably hit here just before the election and the poor opposition will inherit a poisoned chalice.

[oldrider]

If there is a crash it will probably hit here just before the election and the poor opposition will inherit a poisoned chalice.

Well at least it's something that Labour knows a lot about! (Train of thought anyone)

[mashman]

The Chinese look to have done the property thing in China then jumped on the Stock Market and as they were able to move money offshore global property.
Given the Chinese economy is slowing and the sharemarket is being propped up by Govt decree you would have to wonder how long the 'overseas' money can stay here.
Are the Aussie banks in good shape..? The CBA had a good year.
If there is a crash it will probably hit here just before the election and the poor opposition will inherit a poisoned chalice.

Meh... it's gotta happen at some point for any number of reasons.
So, early election then