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Stocks Are Booming, So Beware The Bust

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http://www.telegraph.co.uk/finance/economics/10070918/Stocks-are-booming-so-beware-the-bust.html

As one bubble deflated, former Federal Reserve chairman Alan Greenspan would merely inflate another, thereby helping sow the seeds for today’s catastrophic banking crisis

One of the defining characteristics of an asset bubble is that most professional money men know one when they see one, but on the “greater fool theory” – the belief that when making a questionable investment there is always some idiot willing to pay even more – are very reluctant to leave it.

The point was tellingly made at the height of the credit bubble by Chuck Prince, back then chief executive of Citigroup, when he remarked that “when the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.”

Still one more bubble should fix it all...

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You ain't seen nothin' yet. Carney will keep the punchbowl going, surely?

You've seen what's been said today?

Beware of half measures. Expect punch bowl amd kitchen sink

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You've seen what's been said today?

Beware of half measures. Expect punch bowl amd kitchen sink

I already want to punch him and he's not even started yet!

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We have historically low interest rates, bond yields and money printing. Stock market prices, relative to corporate profits are high, but represent one of the only places to achieve real inflation beating returns.

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We have historically low interest rates, bond yields and money printing. Stock market prices, relative to corporate profits are high, but represent one of the only places to achieve real inflation beating returns.

..as it did in the 1929 high........... :rolleyes:

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You ain't seen nothin' yet. Carney will keep the punchbowl going, surely?

Carney is going to print lime crazy and it will have a HUGE affect on UK stocks, the Pound and house prices but no one on here wants to even consider it.

Plus, overnight in the US, Bernanke basically said that there is no end in sight for QE.

No.doubt I will be shouted down now for daring to mention what is coming.

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Carney is going to print lime crazy and it will have a HUGE affect on UK stocks, the Pound and house prices but no one on here wants to even consider it.

Plus, overnight in the US, Bernanke basically said that there is no end in sight for QE.

No.doubt I will be shouted down now for daring to mention what is coming.

Denninger seems to think eventually the Fed will wake up and realize it aint gonna work.

http://market-ticker.org/akcs-www?post=220960

I think he is mistaken on this personally, in that he thinks Bernanke is sane or even cares. Personally i dont. Bernanke is no different to the goons in charge in Zimbabwe or Weimar, people are no more intelligent now than 90 years ago. They certainly dont pay any more attention to history. The media have given the public the impression bubbles are good, and god help anyone who disagree with them.

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Denninger seems to think eventually the Fed will wake up and realize it aint gonna work.

http://market-ticker.org/akcs-www?post=220960

I think he is mistaken on this personally, in that he thinks Bernanke is sane or even cares. Personally i dont. Bernanke is no different to the goons in charge in Zimbabwe or Weimar, people are no more intelligent now than 90 years ago. They certainly dont pay any more attention to history. The media have given the public the impression bubbles are good, and god help anyone who disagree with them.

I agree with you. Bernanke is retiring at the end of the year - he will want to leave as the chap who took the DOW and NAsDAQ to new record highs. Ego, Ego, Ego.

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Carney is going to print lime crazy and it will have a HUGE affect on UK stocks, the Pound and house prices but no one on here wants to even consider it.

Plus, overnight in the US, Bernanke basically said that there is no end in sight for QE.

No.doubt I will be shouted down now for daring to mention what is coming.

Whilst I don't disagree with you, I'm wary that what you're forecasting seems so blindingly obvious that it almost feels like a feint.

Suggesting that central banks and central bankers use bullsh1t as a tool every bit as much as QE and interest rates is not mere conjecture. Carney himself said as much in a speech not long after he was hired as incoming BoE governor. You've only got to look at the word by word dissection every time Bernanke or Draghi open their mouths, looking for clues as to the future direction of policy.

I'm not saying you're wrong, but when something seems so obvious I'm loathe to take it at face value.

Of course, in the case of the UK, it might just be that we have to make it totally obvious so that anyone with an IQ greater than 3 knows it was all the fault of that bloody foreign bloke when the wheels have fallen off.

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Whilst I don't disagree with you, I'm wary that what you're forecasting seems so blindingly obvious that it almost feels like a feint.

Suggesting that central banks and central bankers use bullsh1t as a tool every bit as much as QE and interest rates is not mere conjecture. Carney himself said as much in a speech not long after he was hired as incoming BoE governor. You've only got to look at the word by word dissection every time Bernanke or Draghi open their mouths, looking for clues as to the future direction of policy.

I'm not saying you're wrong, but when something seems so obvious I'm loathe to take it at face value.

Of course, in the case of the UK, it might just be that we have to make it totally obvious so that anyone with an IQ greater than 3 knows it was all the fault of that bloody foreign bloke when the wheels have fallen off.

Yep. Which is the paranoid situation that we seem to live in here on HPC. I think his record speaks for itself personally - perhaps he is a one trick pony?

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Yep. Which is the paranoid situation that we seem to live in here on HPC. I think his record speaks for itself personally - perhaps he is a one trick pony?

I don't think that's paranoid! :lol:

Whether he is a one trick pony or not is unimportant IMO - what matters is the intentions and directions of his paymasters. The problem is working out who his paymasters are (now that's paranoid :P )

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Denninger seems to think eventually the Fed will wake up and realize it aint gonna work.

http://market-ticker...www?post=220960

I think he is mistaken on this personally, in that he thinks Bernanke is sane or even cares. Personally i dont. Bernanke is no different to the goons in charge in Zimbabwe or Weimar, people are no more intelligent now than 90 years ago. They certainly dont pay any more attention to history. The media have given the public the impression bubbles are good, and god help anyone who disagree with them.

There's no evidence Bernanke knows what he's doing, or has ever done so. In 2005 he was still congratulating himself for bringing about the Great Moderation even as US house prices were in the blow-off phase of a hyperinflation. At every stage in the subsequent crisis he's been publicly in denial over the extent of the bubble and the financial ramifications of its collapse. His decision to draw down the Fed balance sheet to fund the banking bailout Term Asset Facility in 2008 was signally responsible for precipitating the stock market crash, a decision he immediately reversed without apology or explanation early in 2009. The man's a complete charlatan.

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Bernanke has just said no QE tapering. Stocks soar.

And then clarified that he meant "not right now, anyway". Stocks drop back down again, gold drops $35.

It reminds me of the Life of Brian sketch with the hermit - "Where shall we ****** off to, oh great one?".

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Bernanke has just said no QE tapering. Stocks soar.

Excellent.

My pension, which i have contributed ****** all to for 12 years, will be doing nicely.

And when the madness ends, i will have lost nowt and gained in other areas.

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With retail investors currently getting out of the game, stock markets are increasingly just a game of poker between the big institutions. At some point one of them is going to fold ...

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With retail investors currently getting out of the game, stock markets are increasingly just a game of poker between the big institutions. At some point one of them is going to fold ...

Not when Benny and Abe are shoving $100+bn big ones into their pockets every month.

dow-36000.png

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Hang on, he carried on talking... and now he says he might end it.... Can you imagine asking him if he wants ketchup or mustard on his hot dog?

"Must continue to hold up Japan..." ?

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  • 245 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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