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Markets Soar As Bernanke Warns Against Slowing Stimulus

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http://www.telegraph.co.uk/finance/markets/10074045/Markets-soar-as-Bernanke-warns-against-slowing-stimulus.html

US markets surged to record highs on Wednesday as US Federal Reserve chairman Ben Bernanke said the American economy was in better health than a year ago, but warned that slamming the breaks on its fiscal stimulus package would jeapordise the recovery.

Mr Bernanke told the US congressional joint economic committee that it will keep its short-term interest rate close to zero for a “considerable time” and signalled that it has no immediate plans to wind down its controversial quantitative easing programme, under which the central bank buys $85bn in bonds a month.

“Premature tightening of monetary policy” might lead to a temporary hike in interest rates, but it would also “carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further”, Mr Bernanke said.

Damn who wants inflation to fall? Clearly having it going up is stimulating the economy.

So near 0% rates indefinitely then?

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US markets fall on Bernanke's mixed messages

The FTSE neared its record high and US stocks briefly surged past theirs on Wednesday as US Federal Reserve chairman Ben Bernanke said it would not slam the breaks on quantitative easing any time soon.

Mr Bernanke told the US congressional joint economic committee that the American economy was in better health than a year ago, but warned that a sudden end to the fiscal stimulus package would jeapardise that recovery. The Fed will keep its short-term interest rate close to zero for a “considerable time” and has no immediate plans to wind down the quantitative easing programme, under which the central bank buys $85bn in bonds a month, he said.

However, the shot of confidence was short-lived, as markets speculated that the Fed may start winding down its quantitative easing programme if the economy continues to improve.

Excellent headlines from the Telegraph!!! :lol::lol:

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Just to add to the overall joy of this thread:-

Carney speaks

He described Japan's recent efforts to kick-start its economy and bring an end to a decade of deflation as a "bold policy experiment". The initiatives, dubbed Abenomics after the prime minister, Shinzo Abe, involve monetary and fiscal measures, including a huge money-printing exercise.

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...this logic seems to be a counter balance ....all to happen in next three months ...take your pick.... :rolleyes:

Scientist Predicts 60% Market Collapse

Chris Martenson is a world-renowned expert on identifying dangerous, yet hidden, exponential growth patterns in global economies, energy demand, and food consumption...

And he is predicting a 60% stock market collapse will strike in the next three months.

http://www.moneynews.com/MKTnews/Market-Collapse-Predicted-By-Scientist/2013/03/13/id/494569?promo_code=13001-1

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  • 243 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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