quantitative easing, one sends false signals into the market which, while certainly boosting shareholder wealth in the short term, do not reflect the reality of the company’s underlying condition (Heller, 2017; Van Lerven, 2016).
Moreover, chasing shareholder wealth exclusively to all other goals is the same as putting profits before people. It is a secular rather than a spiritual goal. Christ did not say, “Love God, and chase profits second.” He said, “Love God, and love your neighbor,” indicating that when one does right by God and one’s neighbors, good… Continue Reading...
quantitative easing (QE), designed to send “trillions of euros [dollars, and pounds] into the financial system” (Van Lerven, 2016, p. 237). While QE tends to prop up market prices, the goal of the policy is to jumpstart the economy—much like the concept of basic income is meant to do. The more money people have, the more likely they are to spend, right? That is why CEOs like Elon Musk and Mark Zuckerberg support the concept of basic income—it is populist and it puts more money in the pockets of people… Continue Reading...
With the Fed shifting from quantitative easing (QE) to quantitative tightening (QT) in recent years, and the end of unconventional monetary policy, interest rates are set to continue to rise as the central bank reduces its balance sheet. With bond yields already going up and volatility at all-time lows, questions remain about how the market will react to this normalization process. One thing is for certain, however: the recent rise of prices across several asset classes has coincided with the years of QE beginning in 2008. Home prices have soared, bond prices have soared, equity… Continue Reading...
economy from free market to command (thanks to central banking interventionist policy like quantitative easing), and the stagnation of wages, it is harder for the American Dream to seem possible.
As Kiersz (2015) shows using data from the St. Louis Fed, income inequality has gone up considerably over the past 40 years. The top 1% in the country have seen their paychecks grow exponentially while the working class wages have barely moved. Meanwhile, food prices, health care, education, homes, cars, stocks, bonds—virtually everything has gone up. The wealthy can afford them, but the lower classes have to borrow or work two jobs just… Continue Reading...
masked by central bankers adopting a policy of unconventional monetary policy known as quantitative easing (QE). QE led to significant asset inflation (stock market at all-time highs, bond yields at all-time lows, the housing bubble re-inflated, precious metal prices soaring, food costs soaring, and so on). If this were rational self-interest, the argument could surely be made that those players who had adopted foolish strategies in the marketplace should be made to take it on the chin and accept the repercussions, even if it meant pain for the global economy as a result. What resulted however was not this but rather the prevailing… Continue Reading...
than even investment companies like Schwab. AAPL is clearly a strong stock and with central banks around the world continuing to use quantitative easing to prop up the stock markets, it makes sense to buy a stock like AAPL, hold for gain over a short amount of time while the bull market in equities continues in the U.S. and sell before the bull turns bearish.
The stock performed as I expected it to as much of the news was about how the market was responding favorably to the Trump presidency. Trump himself has tweeted out on numerous occasions the significant rise in the stock market and has taken credit for its rise.… Continue Reading...
Quantitative Easing has caused a slight bubble in the markets" -- it is a tongue in cheek way of communicating the fact that the markets are in an enormous bubble that has been inflated by the Fed. The readers understand this and it is the kind of humor they really appreciate.
Thus, Durden does very well in appealing to his audience. He achieves his purpose every day, as numerous posts throughout the day keep readers coming back to see the latest report on stocks, banks, gold, the economy, politics, and… Continue Reading...
