Monetary Madness in a Single Chart: Hyperinflation's Just Around the Corner [View article]
But these other forms of "monetary assets" that you believe were "sucked out of the system" were mere fantasy, and never existed anyway. What was the value of all MBS before the Great Bubbles created by Greenspan/Bernanke?
On Jun 13 04:47 AM nobby73 wrote:
> As others have said, this graph is misleading. This money has been > created to replace the other forms of monetary assets such as MBS, > which were sucked out of the system. > > It makes much more sense to look at broad money supply as you then > see the monetary base had been expanding at a much faster rate than > this graph shows and the collapse in the repo market for ABS was > the hugely deflationary event this stimulus was designed to counter. > > > Were we have seen hyperinflation, eg Weimar Germany or Zimbabwe, > you see shocks in the relationship between prices and wages. Efforts > to create price controls which lead to lack of supply of goods followed > by large wage increases to counter price rises when those controls > are reduced. I don't see this happening in the US....
Tuesday Outlook: Commodities, Global Markets [View article]
Thanks David. Regarding replacing GM with Apple or Google in the dow, it only matters for the tourists.
I don't see any positive fundamentals. Government has taken over the economy and doing the spending, borrowing, asset allocation, and reward allocation that are normally undertaken by free market forces. They are picking unproductive losers in the financial sector as winners, whilst turning the most productive elements in society into losers, as they will have to pay for the subsidies being heaped upon the incompetents.
With the dire long-term outlook of a new form of centrally-planned crony capitalism , I've taken the recent rally as an opportunity to book some attractive gains, and will book more if the opportunity arises. I expect to be a net buyer again if and when S&P500 drop below 710, which I expect will occur when the markets recover from the shock and awe of Da Boyz, as even the latter may run for cover.
Monetary Madness in a Single Chart: Hyperinflation's Just Around the Corner [View article]
On Jun 13 04:47 AM nobby73 wrote:
> As others have said, this graph is misleading. This money has been
> created to replace the other forms of monetary assets such as MBS,
> which were sucked out of the system.
>
> It makes much more sense to look at broad money supply as you then
> see the monetary base had been expanding at a much faster rate than
> this graph shows and the collapse in the repo market for ABS was
> the hugely deflationary event this stimulus was designed to counter.
>
>
> Were we have seen hyperinflation, eg Weimar Germany or Zimbabwe,
> you see shocks in the relationship between prices and wages. Efforts
> to create price controls which lead to lack of supply of goods followed
> by large wage increases to counter price rises when those controls
> are reduced. I don't see this happening in the US....
Tuesday Outlook: Commodities, Global Markets [View article]
I don't see any positive fundamentals. Government has taken over the economy and doing the spending, borrowing, asset allocation, and reward allocation that are normally undertaken by free market forces. They are picking unproductive losers in the financial sector as winners, whilst turning the most productive elements in society into losers, as they will have to pay for the subsidies being heaped upon the incompetents.
With the dire long-term outlook of a new form of centrally-planned crony capitalism , I've taken the recent rally as an opportunity to book some attractive gains, and will book more if the opportunity arises. I expect to be a net buyer again if and when S&P500 drop below 710, which I expect will occur when the markets recover from the shock and awe of Da Boyz, as even the latter may run for cover.