When the fed bought all these banks and other financial institutions, does that make it a safe bet to buy these stocks at their dead lows? The way i see it, the governments not going to make a losing bet with billions of tax payer dollars..so its only a matter of time before they "recover" and shares rise back to normal levels would i be right?...if not then who the f--k is buying 100's of millions of shares/ dollars worth of these stocks? thanks
No, fuck no, I will tell you now it's probably a terrible idea. I may not know a lot about trading and the markets yet but one thing I have studied reasonably heavily so far is the Economy. The billions that the federal reserve have spent bailing out these companies are not from the taxpayer, the taxpayer could never afford that so where do you think it could have come from? The majority of it has been blatantly printed out by the fed repeatedly over decades and it's causing inflation on the scale of Germany's economy after the war. They should have let these banks and institutions die but they didn't if I were you I'd treat all those government owned private institutions as toxic especially if your thinking of investing. Stick with the companies that are actually honest about themselves and can fail your less likely to get caught up in the mess that way. Of course anyone here can feel free to correct me if I'm wrong, I'm still learning so I don't have all the know-how yet
Ron Paul ish my master!! Seriously though, I think the man's a genius when it comes to the economy and I've been learning most of my stuff from him and the people who've worked with him.
For someone who has studied the economy 'heavily', shouldn't you know that an increase in the money supply is <a href="http://en.wikipedia.org/wiki/Inflation_tax">effectively a tax</a>?
You are mistaken. The Fed has not made any direct-investments in the commercial banks like Citi, Wells, BAC, etc. TARP came from the Treasury Department.
I am not seeing any inflation at all let alone inflation on the scale of Germany's economy after the war.
And where do you think the treasury department got their cash from? Yes the fed hasn't directly invested in the banks or wall street but they gave the trillions they got to the government who decided who to bailout. The taxpayers can't afford this, the money we currently have isn't actually real it's just debt and credit which is what's causing the bubble at least that's what my understanding of the situation is. If you look at a bank note from the UK I'm not sure if they still have this in the U.S anymore. You will find that it says "Will pay the bearer on demand" pretty much signifying that what your using as a currency is actually a receipt and not the actual currency that the banks hold. I think this is the most recent one I could find after a quick search, I don't have any U.S notes on me. Note that it says "This note is Legal Tender for all debts, public and private". http://www.connectamarillo.com/uploadedImages/kvii/News/Stories/grant.jpg