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Silver Wheaton Corp. Message Board

  • yourdeadmeat69 yourdeadmeat69 Nov 14, 2013 10:35 PM Flag

    YELLEN grilled by one Senator who noted mentioning TAPER in May crashed market raising mortgage rates

    One Senator pulled a "meaty" and said what I have been driving home for years--keeping interest rates low by bond buying and MBS buying, once pulled, would crash the market, brought me to tears as the bright light at the end of the tunnel was properly identified as an oncoming train. He said, the mere MENTIONING of pulling that FIFTY PERCENT demand for US bonds, with a balance sheet of the FED nearing TWENTY FIVE PERCENT--would crash markets.

    Yellen's response--the economy would have to roar before tapering could even be considered--which is as close to "yes" the market would crash.

    That was as close to acknowledgement that we will remain forever in an artificially driven market pop for a minimum of 3 years. Companies will continue to buy back stocks as long as it can borrow money to do so at near zero rates, and issue stock to seniors, who will replace the bought up shares with self indulgence.

    That means no money for new hires, at least not in this country, and the Fed, with it's lower interest rate policy, through a private sector thrilled with status quo, won't pick up the hiring pace beyond couple hundred thousand per reporting period, which should have us fully employed at 6.5% by about 2018.

    See how that works? The Fed is sawing off the very legs of recovery, by crafty companies who turn the easy money on its ear.

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