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So, for those of you that keep you pulse on these things... what is your crystal ball saying that the future will hold? Just curious.

Loan rates going up? They will try it and the stock market will tank and have to go back to buying again? Every thing will just be fine and dandy?

http://www.forbes.com/sites/samanth...rchases-to-0-as-qe-comes-to-long-awaited-end/

$0 — that is how much the Federal Reserve will buy in mortgage and treasury bonds next month. As widely anticipated the Federal Open Market Committee announced the end of its multi-year bond-buying program Wednesday.
 

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Pretty much it is keeping things artificially inflated. Much harder to make millions without gov 'stimulus'. So now you will see folks liquidating in order to be ready to buy stocks on the down swing. Believe it or not there is as much or more money made in a down market than when it is way up.

It will also affect average folks as interest rates will likely start going up.

"DEFINITION OF 'QUANTITATIVE EASING'
An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes."
 

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So, for those of you that keep you pulse on these things... what is your crystal ball saying that the future will hold? Just curious.

Loan rates going up? They will try it and the stock market will tank
Those, bank interest rates going up, we ain't seen nothing yet.
Have cash on hand, and if so inclined, look at stocks to buy...I, however, left that venue some time ago. The only good thing I see, and it's a marginal "good", is it might wake folks up that printing money out of thin air was a bad idea.
Kinda seeing things getting worse before better. The roller coaster has reached one of the tops...next is DOWNHILL.
Just my $0.03, adjusted for upcoming inflation.

Matt
 

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Pretty much it is keeping things artificially inflated. Much harder to make millions without gov 'stimulus'. So now you will see folks liquidating in order to be ready to buy stocks on the down swing. Believe it or not there is as much or more money made in a down market than when it is way up.

It will also affect average folks as interest rates will likely start going up.

"DEFINITION OF 'QUANTITATIVE EASING'
An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes."
So less money will be available to and from lenders, so they'll tighten up on lending money to businesses and people wanting mortgages, so that will cause people to have more hardships because the money they need to do things isn't there… right? And the money that is available for lending won't be as cheap? So then that cost gets passed on to consumers, meaning the cost of everything goes up. Am I understanding this?

If so, that's basically how it was back in 2008 when the housing market crashed. Nearly impossible to get loans for businesses and mortgages without 20% down, and then that resulted in the recession (that I swear I don't think we've ever come out of.) Right?
 

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Look for countries who heretofore wouldn't buy T-bills on a bet to all of a sudden get flush and buy like there's no tomorrow. It wasn't too long ago Belgium bought 3 billion in Treasuries, does anyone really believe Belgium had that kind of money.

In 2008 the Fed quietly (very quietly) digitally printed $17 trillion and sent it to European central banks. Look for more of the same.
 

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Okay, I'll be the dumb blonde and ask - what the heck does this mean? I'm a fairly smart person. I can do a LOT of things. But I don't understand the big-picture financial stuff. So could someone dumb it down for me (and anyone else out there in the same boat as me)?
It is just a continuation of their smoke screen of shearing the sheep a while longer .http://alittletruth.hubpages.com/hub/Federal-Reserve-System-Biggest-Scam-in-History

You may be a victim of the biggest scam in history, and not even know it - the Federal Reserve System. Learn how it works, what's being done to stop it, and how you can help.

For an easy way to understand the Federal Reserve, consider the following illustration:

Not the best article out there but it explains some of how things work :runforhills:
 

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So less money will be available to and from lenders, so they'll tighten up on lending money to businesses and people wanting mortgages, so that will cause people to have more hardships because the money they need to do things isn't there… right? And the money that is available for lending won't be as cheap? So then that cost gets passed on to consumers, meaning the cost of everything goes up. Am I understanding this?

If so, that's basically how it was back in 2008 when the housing market crashed. Nearly impossible to get loans for businesses and mortgages without 20% down, and then that resulted in the recession (that I swear I don't think we've ever come out of.) Right?
Well.....not necessarily. Banks may become more willing to lend as interest rates go up. They'll be making more money.

Something else that you'll see happen is that if interest rates go up on CD's and other interest bearing accounts, folks will pull their money out of riskier ventures like the stock market. Most folks are willing to lose a couple of percentage points in order to mitigate risk.

Though I didn't follow the markets as closely then, I'd guess that this is more like several years before 2008. Part of what caused the crisis then was the housing bubble. Banks had loaned money to everyone....including people that really should have been turned down. I hope that lending practices continue to be a bit tighter. I know that is tough on folks looking for a home loan, but it is much better for overall financial stability.
 

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The one thing that someone who owes 17 or more trillion dollars can't afford is paying high interest rates. If interest rates raise just a few percent it would cost the U.S. an awful lot of money, It could easily cost most of the collected tax revenue just to pay it, and when you borrow more money to just to pay interest the problem really explodes. Most experts say more QE in the future, oh they might not call it that, they might give someone else the money to buy bonds but it will get done or economy will go down, and we will have deflation, good for savers, bad for debt holders. Since it is all about rescuing banks they can't allow deflation.
There are some who after studying stock charts conclude that the plunge protection team are causing stocks to be purchased to keep the market afloat. So the FED maybe intervening in buying up stocks though a third party. All markets are rigged. No more free market thus true capitalism is dead.
 

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Nope not ended, see operation Tokyo Twist...

http://www.gold-eagle.com/article/stealth-qe3-operation-tokyo-twist

to corroborate...
http://blogs.wsj.com/moneybeat/2014/10/31/demand-from-japan-pensions-fund-could-cap-treasury-yields/

They are not only buying treasury bonds, but announced Japan is propping up the stock market.
http://money.cnn.com/2014/11/07/investing/japan-pension-buying-us-stocks/

So is it still QE3 or are we into QE4?

When Japan can't do QE any longer is this next?

http://www.forbes.com/sites/realspi...how-savers-may-be-forced-to-buy-federal-debt/
 

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Nope not ended, see operation Tokyo Twist...

http://www.gold-eagle.com/article/stealth-qe3-operation-tokyo-twist

to corroborate...
http://blogs.wsj.com/moneybeat/2014/10/31/demand-from-japan-pensions-fund-could-cap-treasury-yields/

They are not only buying treasury bonds, but announced Japan is propping up the stock market.
http://money.cnn.com/2014/11/07/investing/japan-pension-buying-us-stocks/

So is it still QE3 or are we into QE4?

When Japan can't do QE any longer is this next?

http://www.forbes.com/sites/realspi...how-savers-may-be-forced-to-buy-federal-debt/
They may do your last one but I think the other countries will stop taking the dollar before that happens . Hard to tell what crazy stunt they will pull next though . They keep refusing to let the economy self correct .

I look for the start of a big war that takes folks mind off the coming crash of the dollar . :facepalm:
 

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Discussion Starter #15
Just curious to how many people think that the federal government can and will change 401k to government bonds? If you do think it is going to happen how soon?
 

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Just curious to how many people think that the federal government can and will change 401k to government bonds? If you do think it is going to happen how soon?
Russia took some retirement funds a while ago, promised to pay them back eventually, Poland took them a bit before that, never promised the people anything, Argentina has done it in the past, and our very own congress committees have discussed the idea and people have made proposals in the recent past. Myra the new retirement savings program is based on treasury bonds. A question, the retirement pension systems hold about 17 trillion dollars in them (if I remember right,) when haven't the politicians not gone after money to spend? The money in the social security trust fund has been raided by congress, and the government must pay the trust fund back each month or there won't be enough money for the retired people that count on it.

How soon? Anybody's guess, I didn't think they could kick the can down the road this long. I'm guessing the economy will start to unravel sometime in the next year, when they will convert pensions into treasury bonds will come after that, got to fund the bread in circuses some how. Keep people from rioting for food.
 
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