"Bernanke’s trying to juice the market, to create wealth for you.”

Discussion in 'Economics' started by S2007S, Nov 3, 2010.

  1. S2007S


    Those are the words of cramer, all I have to say is this market is going to fucking collapse, with words spoken in that matter this market is in real trouble, to think that the fed is "juicing" the markets to create wealth for the people of the US is really not the way to think that's how this QE2 is being spent. Only people feeling this "wealth" are the top 1% of the richest in this country, that's about it, the rest of those in the working class and within poverty lines aren't feeling anything as more than 17 million people still remain unemployed and over 40 million on food stamps, ask the person who is receiving food stamps every week if they have investments in big tech and high paying dividend yielding stocks. Come on this is a fucking game they are playing to make you think the economy is turning around meanwhile the only ones feeling any wealth effect are the big guys at the top.

    cramer is just the biggest fool I have ever seen. I am almost speechless by the thought process of how this fool thinks. He says that bubble ben bernanke is "doing his best to send stocks higher" and that this will have people starting to spend again. First things first, 45 million people in the US are in poverty, he makes it sound like all 300+ million people are fully invested in this stock market can easily withdraw money from their trading accounts on a daily basis and just go buy tvs, shoes, clothes, food and trips to anywhere around the world.

    How Bernanke’s Boosting the Markets for Us
    Published: Tuesday, 2 Nov 2010 | 6:32 PM ET
    Text Size
    By: Drew Sandholm
    Web Producer

    Ben Bernanke is doing his best to send stocks higher, Cramer said Tuesday, because it's the one way he can prevent the US economy from falling into an elongated period of economic stagnation, like Japan had in the 1990s.

    To avoid Japanese-style deflation, Cramer said the Federal Reserve chairman's plan is two-fold: get money back into equities, especially in growth and high-yielding stocks, and send the stock market back up so that people will start spending again.

    People seem to think Bernanke’s policies directly affect the economy, but that’s not true. He, unfortunately, can’t boost home prices or wages, or create jobs for that matter. But what he can do is use the tools at his disposal to create an environment where these things are possible. For one thing, he has kept interest rates low enough that you’d think we would have seen more hiring by now. And he is taking similar steps to prop up the stock market. Here’s what he’s doing:

    Bernanke can flood the world with US dollars to drive up commodity prices, something the markets want very much. He can keep the dollar’s value low, thereby increasing profits for American companies that do business overseas. And these increased earnings entice investors back into stocks. Plus, Bernanke can keep interest rates so low as to make Treasurys and certificates of deposit virtually worthless as investments. That brings investors back to stocks, too.

    “So don’t think about the Fed as trying to create jobs and stabilizing housing,” Cramer said. “I am telling you that we’re looking at this all wrong if that’s what you think. Bernanke’s trying to juice the market, to create wealth for you.”

    Investors are awaiting the results of the Fed's two-day policy-setting meeting, which began Tuesday and ends with a much-anticipated statement Wednesday afternoon. While many economists expect the Fed to announce plans to buy Treasury securities to stimulate the economy, Cramer said Bernanke will use "any means necessary" to prevent the "Japanization" of the US economy.

    <object id="cnbcplayer" height="380" width="400" classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,0,0" >
    <param name="type" value="application/x-shockwave-flash"/>
    <param name="allowfullscreen" value="true"/>
    <param name="allowscriptaccess" value="always"/>
    <param name="quality" value="best"/>
    <param name="scale" value="noscale" />
    <param name="wmode" value="transparent"/>
    <param name="bgcolor" value="#000000"/>
    <param name="salign" value="lt"/>
    <param name="movie" value="http://plus.cnbc.com/rssvideosearch/action/player/id/1631740015/code/cnbcplayershare"/>
    <embed name="cnbcplayer" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer" allowfullscreen="true" allowscriptaccess="always" bgcolor="#000000" height="380" width="400" quality="best" wmode="transparent" scale="noscale" salign="lt" src="http://plus.cnbc.com/rssvideosearch/action/player/id/1631740015/code/cnbcplayershare" type="application/x-shockwave-flash" />
  2. Well, use the paper, or toilet paper, to buy real assets around the world. In that sense he is right.
  3. Cramer forgot his bi-polar meds that's all.
  4. Does anyone remember how bad Cramer was during the 2008-2009 crash? He'd call the end of the crash after each big rally day, then panic and give up all hope just before each intermediate bottom.

    He also was crazy bullish on tech stocks in early 2000, giving a list of his favorites that absolutely plunged.

    Why anyone listens to him now is beyond me.
  5. can't blame Cramer for being happy about the market going up. his livelihood depends on a happy market. if the stocks go down and stay down nobody will watch his show.
  6. I can't stand him, his so F*cking annoying and stupid. Especially since he went on The Street and bragged about breaking the law. He is like the Jerry Springer show of CNBC, white trash drama sells in Amerika.
  7. They've been doing this in stealth manner since at least 1995, the difference being that back in those days no one was the wiser and there was REAL interest in stock ownership and tons of participation.

    As soon as wages could no long keep pace with a variety of costs, from real estate to tuitions to etc, the Fed began it's policy of creating rampant asset inflation to cover up that sinkhole that was developing with downward pressure on wages and tons of offshoring.

    It's also no coincidence that the concentration in jobs growth during that period was in the FIRE sector as we morphed from one type of economy into this era of "financialization".
  8. S2007S


    I think they are trying to prop up markets to get everyone back into the this game and of course we all know what happens when everyone is joining in the fun. It happened to a friend of mine in OCTOBER 2007 when he took $100,000 and bought into about 8-12 different mutual funds, within 18 months he was down close to 50%. He ended pulling some of it out on the way up. Why? Oh because he had no work and had to start living off his savings. Anyone who is smart enough and still held in during this drop will be selling once they start to break even which will be probably around 13k depending on how many stocks were paying dividends during this time.

    The fed is out of everything possible to keep this economy running, the more hundreds of billions they spend the higher inflation rises and the more trouble the dollar gets into. I can guarantee you rates will stay as low as they are now for at least another 2-3 more years as the economy will be to dependent on these handouts its been receiving from bubble ben bernanke and friends.
  9. S2007S


    Wages are long away of keeping up with costs of everything from food to clothes and what ever people need. Minimum wage is set at $7.25 last raised in May of 2007.

    Wages haven't kept up and probably will never catch up. Its the game they play.
  10. Right, my point exactly. As a result, it also plays heavily into the banking industries arms as they have a captive group of middle class to lower middle class folks who rack up enormous debts via mortgages, student loans, cost of living expenditures, etc...

    Alot of this shit is really outside of the two party system rhetoric as I always can hear the arguments on both sides when I make these assertions. One really needs to be a-political to see this racket for what it truly is...
    #10     Nov 3, 2010