Quote:
Originally Posted by donb9006
Really? Things rising parabolically isn't a bubble?
The Fed printing is what's keeping it all going. Low interest rates from their bond buying. Free money at the discount window. Buying bad mortgages from the banks. They're trying to borrow their way out of a long ongoing depression. Without welfare, Section 8, SNAP food cards, the homeless would be everywhere and there would be soup lines a mile long. Almost 50 million people are on food assistance, millions more in government housing.
It's a bubble...still growing...it's tulip mania. Until the first "whale" runs for the door...
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I happen to agree with you and have used the tulip mania anaology. The Fed is way out on a limb here. Frankly I come to the conclusion that money markets, CD's etc are something I will never again be able to utilize as a savings vehicle/ladder because the Fed will hold a tight rein there unless and until it believes inflation can remains stable. There is also a concern for deflation. what's a Fed to do?