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Ftse Closes Near 2.5 Year High On Fed Qe Boost

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http://uk.reuters.com/article/idUKTRE6A318F20101104

Top shares closed at their highest in nearly 29 months on Thursday as investors responded bullishly to the U.S. Federal Reserve's decision to pump more cheap money into the economy to boost flagging growth.

Financial stocks, led by Man Group (EMG.L) and mining and energy shares such as BHP Billiton (BLT.L) and BP (BP.L), surged higher as riskier assets around the world rose despite concerns the programme could do more harm than good.

The FTSE 100 .FTSE closed up 113.82 points or 2 percent at 5,862.79, its highest since June 9, 2008, after the Fed committed to buy $600 billion (370 billion pounds) in government bonds to support a struggling U.S. economy on Wednesday.

"The market's reacted positively to QE and there's a risk on environment, with data out of the U.S. better, the concerns about a slowdown are less pronounced," said Phil Poole, global head of macro investment strategy at HSBC Global Asset Management.

There was good economic news from the United States on Thursday where non-farm productivity rose faster than expected in the third quarter, while unit labour costs fell.

New U.S. claims for unemployment benefits rose more than expected last week, underlining the persistent weakness in the jobs market which is threatening the recovery.

Yeah, fill your boots on the good news recovery....

It really couldn't get any better than this.

Free money for the rich and the poor get to find out what the pecking order truly is.

The Dow's currently up as well.

This time next year Rodders we'll all be Billionaires.

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This time next year Rodders we'll all be Billionaires.

Ripoff, I understand your disgust, but I think this one will get into wages.

Lets hope the BoE and condems don't choke off the wage recovery!

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Ripoff, I understand your disgust, but I think this one will get into wages.

Lets hope the BoE and condems don't choke off the wage recovery!

So far the only people's wages who seem to have benefit from QE are the bankers.

Politically for America this money has got to end up in the pockets of the workers, of course the bankers will hoover it all up and line their own pockets again but the money needs to drip feed from the bottom to the top.

Trouble is those at the bottom will demand more and more free money once they find how easy it is.

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So far the only people's wages who seem to have benefit from QE are the bankers.

Politically for America this money has got to end up in the pockets of the workers, of course the bankers will hoover it all up and line their own pockets again but the money needs to drip feed from the bottom to the top.

Trouble is those at the bottom will demand more and more free money once they find how easy it is.

interesting to see how bullish and near certain of inflation everyone is on here with the April highs being taken out, particularly the PM lovefest, of course these are also potentially the ideal sort of sentiments you look for near a market top

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interesting to see how bullish and near certain of inflation everyone is on here with the April highs being taken out, particularly the PM lovefest, of course these are also potentially the ideal sort of sentiments you look for near a market top

I'm not certain of anything.

I have no idea what the hell is going to happen, my gut feeling is that the powers that be will try to engineer stagnation to try and stop either a hyperinflation implosion or a deflationary collapse. Managing this tightrope will be a policy nightmare.

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Politically for America this money has got to end up in the pockets of the workers

But if they don't have jobs, it can't, can it.

So . . . it won't work.

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my gut feeling is that the powers that be will try to engineer stagnation to try and stop either a hyperinflation implosion or a deflationary collapse. Managing this tightrope will be a policy nightmare.

Given the increases in wheat, corn, sugar, cotton etc. they may be too late.

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equities are an inflation hedge, that is why they go up on more QE.

when prices go up, corporate debt decreases and sales go up result = more profits.

Cash gets decimated.

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I have no idea.

When we had QE1 I was convinced the markets would tank - in the end we had an 18 month boom that has been one of the best bull runs in decades. I kept thinking and hoping it was a bear market rally.

Now I look at QE2 and am wondering again WTF is going? Do I jump in or is this all a cunning plan to get my savings? Can the US Fed be really plotting to get their hands on TMT's savings? Get their hands on millions of savers' savings and then short and collapse the market? Are we just paranoid?

Or are we going to see another 18 months of bull run and we all, 18 months from now, kick ourselves that we did not jump in now?

Frightening times.

Btw, still no sign of a HPC.

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interesting to see how bullish and near certain of inflation everyone is on here with the April highs being taken out, particularly the PM lovefest, of course these are also potentially the ideal sort of sentiments you look for near a market top

all we can be certain of for now is volatility but in the end my dear, it aint gonna be monetary deflation.

you can book that and put it on the pulpit and leave it open on this page as long as you like.

short term I agree down is as likely as up, which is why I don't waste my time on short term spec because I haven't got a candle to hold against the real pros and the leverage they have, and frankly it takes too much precious time.

wouldn't it be nice to be able to just plonk it down and just fuggedaboutit?

That's my aim, I'm not there yet but I'm getting closer.

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Money debased. Asset prices have to rise to stand still. Same principle as the gold bugs.

But it isn't our money being debased this time. So rises here are less than rational: either the market was too low yesterday or it's too high today. Though one could make rational arguments for the rise, like the expectation of more debasement here just went up.

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Ripoff, I understand your disgust, but I think this one will get into wages.

Lets hope the BoE and condems don't choke off the wage recovery!

Yep, just what the data is saying...

"There was good economic news from the United States on Thursday where non-farm productivity rose faster than expected in the third quarter, while unit labour costs fell."

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Given the increases in wheat, corn, sugar, cotton etc. they may be too late.

Nope, they could still pull a 2008 at this stage and let the markets crash again. Commodities crashed hard with everything else. Basically the FED is using the US stock market as a monetary tool. Modern central banking revolves around managing inflation expectation. We are getting very close to the investing community being all in on the inflationary trade. Just where they want them.

Ideally they want to drop the market while QE2 is playing out to soften the impact of the necessary deleveraging. Now the midterm elections are over politically the can endure another bout of deleveraging. They can not keep lining the pockets of the rich for very much longer while main street is being shafted with stagnant and falling wages with rising prices.

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I often wonder what would have been said on forums like this back in the 1970's or even 1980's.

kbyu89.jpg

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  • 144 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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