QE3 PURE POLITICS AS STOCKS SURGE $1.5 TRIL ON QE2 EXCESS CASH
I am always amazed that stock prices can easily surge trillions of dollars on HOPES of the Fed Res printing more free money via QE3 when the current trillion plus dollar stock surge proves there is a ton of EXCESS cash FLOODING the world already.
World banks printed over $16 trillion in the past few years (this is equal to the total US economy), yet the jobless rate in US is 8.2% and 25% in some parts of Europe. Housing prices hardly budged over this time period. So what is the purpose of printing more money via QE3? Pure politics, if Bernake implements QE3 he will establish a new role for the Fed Res to manipulate US elections.
Bernake already manipulates: interest rates, FX exchange rates by buying Euros and weakening the US dollar, stock market through buying bad mortgages at full price and easy money policy to banks that don't pass that benefit onto the public, buying $2 trillion US treasuries aka buying US debt and now manipulating election outcomes. Wow, is this still America?
Update... stock market recent surge is now up $2.5 Trillion WITHOUT QE3. How many jobs where created during this $2.5 trillion stock surge? From the reports, not much. So QE3 is all politics, with some pseudo insider trading for Bernake who's personal stock portfolio is skyrocketing from his Federal Reserve stock market manipulations. Stocks are up $9 trillion and NASDAQ is up 130% since Obama took office. During this same period, unemployment is almost 1% higher and $6 Trillion dollars were added to the US debt. Obama and Bernake should be honest and just say they only care about Wallstreet and not the unemployed or seniors who are the ones who need the help but need to buy food instead of stock certificates.
There are two important things that keep the world go round; real estates and stocks. Real Estates will continue to depreciate if people's wealth (stocks) does not improve. Although it might sound artificial, the printing of money should ( "has to" might be better words) help create confidence and jobs for millions of suffering unemployed. Our current market is in the game of manipulations and the manipulations (to control inflation from going out of control again) will "eventually" put the world economy back in equalibrium.
All and all, the government has no choice but to help the stock markets go up to keep real estates from dropping further. And letting dead beats( most of these people have nothing to contribute to the economy, financially) live for free and decreasing the balances of their mortgage is farthest away from fixing the real problem. Anways, if people's wealth can not be recouped from their 401k, IRAs and other private funds in stocks, then "the only choice" is to declare a nuclear war to clean up the mess we have created for ourselves based on greed. That of course, should not happen. Therefore, it is time for the stock market to "consistently" go up. Too many people have lost their life savings, spouses (due to divorces) and morality. We can no longer afford to bring home casualties if we let greedy and corrupted politicians ruin the world.
Next Monday could be your last chance to own BAC at a huge discount because the future always depend on the success of banks. Own some BAC while interest rates are still low. Because when they go up, your bank stocks will quadriple in value!