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View Full Version : Why does Wall Street fear Fed's taper plan



Common
11-25-2013, 06:23 AM
Considering how many little people are hurting in this country, reading this aggravates me to no end. Pooor poor Wallstreet

Wall Street, with its dependence on cheap money, is worried the stock market will suffer withdrawal when the Federal Reserve starts dialing back its stimulus.For years, the Federal Reserve has been Wall Street's best friend as it injected tens of billions of dollars each month into the arteries of the stock market and economy — the financial world equivalent of a performance-enhancing drug.


http://www.usatoday.com/story/money/markets/2013/11/24/why-wall-street-fears-fed-taper/3664723/

zelmo1234
11-25-2013, 06:50 AM
As far as the street goes it will definitely see and effect when the stop pumping money into it!

But they never should have started in the first place. And they would not have had this bubble!

But it is high time that we get to reality, with all of this type of money printing we have to get through the inflation as well, so this could be the trigger that get that next hurdle out of the way!

The only way we are going to start rebuilding the middle class is to get the government to stop trying to pick the winners and losers, and let the people get back to work!

Mini Me
11-25-2013, 08:13 AM
As far as the street goes it will definitely see and effect when the stop pumping money into it!

But they never should have started in the first place. And they would not have had this bubble!

But it is high time that we get to reality, with all of this type of money printing we have to get through the inflation as well, so this could be the trigger that get that next hurdle out of the way!

The only way we are going to start rebuilding the middle class is to get the government to stop trying to pick the winners and losers, and let the people get back to work!

QE(quantitative easing by the Fed has not helped Main Street one bit!

But if they stop the music, the markets may panic, as what happened recently when Bernanke just hinted at tapering it off. Interest rates jumped a whole one per cent, and damn near killed the mortgage market and real estate!

Its like a drug abuser quitting cold turkey, he will face severe withdrawals!

Now, just think how it would have improved the economy if that 85 billion every month had gone into Main Street, and not Wall Street all this time? The economy could have boomed!

Wall street prospers while the economy remains in the toilet.

AmazonTania
11-25-2013, 09:53 AM
Taper is bad for the economy in general. Not just Wall Street.

Which is why Yellen will never do it. She's all in with no exit strategy.

Peter1469
11-25-2013, 09:59 AM
Taper is bad for the economy in general. Not just Wall Street.

Which is why Yellen will never do it. She's all in with no exit strategy.

Creating more and more money and debt is also bad for the economy. The debt will be deleveraged one way or another.

zelmo1234
11-25-2013, 10:04 AM
QE(quantitative easing by the Fed has not helped Main Street one bit!

But if they stop the music, the markets may panic, as what happened recently when Bernanke just hinted at tapering it off. Interest rates jumped a whole one per cent, and damn near killed the mortgage market and real estate!

Its like a drug abuser quitting cold turkey, he will face severe withdrawals!

Now, just think how it would have improved the economy if that 85 billion every month had gone into Main Street, and not Wall Street all this time? The economy could have boomed!

Wall street prospers while the economy remains in the toilet.

Even Better just think what it would have don for the dollar if we have never printed the 85 billion at all?

It would be much stronger against other currencies and main street would have better buying power for their dollar

Toro
11-25-2013, 12:10 PM
Hooray for money printing!

Mini Me
11-26-2013, 10:06 AM
Even Better just think what it would have don for the dollar if we have never printed the 85 billion at all?

It would be much stronger against other currencies and main street would have better buying power for their dollar

That money is electronic fund transfers, it does not go directly into the economy. The Fed does not print money, only the treasury does. So those transfers are not inflationary, at least in the short run.

The Stimulous would have been much better, if they had loaded up trillions in Brink's armored trucks, and driven around to struggling cities, and tossed hundred dollar bills out the back to the peasants. Virtually all of that money would have gone into the economy from poor people, rather than big robber banks hoarding the money.

Of course, they would have had to do this in increments, over a long period of time, to boost demand of goods and services. That would have been a You Tube big hit, watching folks scramble and fight for the money! I remember something about unpopular Kings and rulers doing such a thing, wasn't it the Romans?

Peter1469
11-26-2013, 10:54 AM
That money is electronic fund transfers, it does not go directly into the economy. The Fed does not print money, only the treasury does. So those transfers are not inflationary, at least in the short run.

The Stimulous would have been much better, if they had loaded up trillions in Brink's armored trucks, and driven around to struggling cities, and tossed hundred dollar bills out the back to the peasants. Virtually all of that money would have gone into the economy from poor people, rather than big robber banks hoarding the money.

Of course, they would have had to do this in increments, over a long period of time, to boost demand of goods and services. That would have been a You Tube big hit, watching folks scramble and fight for the money! I remember something about unpopular Kings and rulers doing such a thing, wasn't it the Romans?

I believe that some Roman rulers tried that tactic. They also started to dilute their gold coins with other metals. Eventually ever the barbarians wouldn't accept Roman coin.