Why would they ...its the only way to keep this inflated market and economy going....why would they stop printing money? But just to let you know if you think the last financial crisis was bad just wait until this fun stops...the next economic collapse will make the current crisis look like nothing never happened...
He's right. The Fed is boxed into a trap of their own making. The best they'll ever be able to do is a marginal taper to make it look like they're serious.
Yellen is just as dovish as Bubble ben bernanke... So expect the printing press to keep printing for the next 5+ years. All these market gains are all related to free cheap worthless dollars. Once it's over the biggest drop in history will occur....don't be surprised when it happens though.
I'm quite sure they won't be able to keep QE at these levels.It's a drug and like all drugs it will need to increase to keep the same effects. As far as I can see,macroeconomic data are deteriorating as time passes, and QE is there at the same levels. Are you sure that in the end market will drop? It could sky rocket instead. Here's why: now hyperinflation is kept away with the promise that debt will be repaid.FED is printing money that now is expected to return back some day and be destroyed. This looks highly unlikely to me (not to say impossible). If (or should I say when?) one day all this debt will be zeroed, there will come hyperinflation. In Weimar Republic, market quotes sky rocketed to keep more or less the same actual value, it was just money that lost value very fast. And hyperinflation in Weimar republic was one of the main reasons for Hitler getting to power and for the II World War. And guess what? One of the main reasons to chase and destroy Jews was their connection with the financial system. Hitler & friends held them responsible for the crisis. Can you see any similarities with current situation? Returning to hyperinflation and market skyrocketing, the current rise in quotations could be seen as a little anticipation of hyperinflation, that is, market is starting to incorporate this possibility. What do you think?
I think there are any number of scenarios -- few if any of them good ones -- that could result from the nonsense we as a society have produced. The one you describe is not far fetched. And I do agree that the social part of the price tag is worth talking about
in hyperinflation stocks may not keep up with the rate of inflation. you may need to be leveraged which may be both dangerous and difficult under those circumstances.