They are doing it for 33 years non stop is it some moronic feature to become the Fed member - they get Nobel prizes for wealth effect. They print money like insane and still every bubble they blow bursts Just a year or 2 ago Yellen said we will never see crisis like 2008 in our lifetimes. With such morons we gonna have such crisis every 2 years Did you notices collapses started to come more often? Aug 2016, Feb 2018, Dec 2018, Mar 2020 Instead of allowing market forces to deflate valuation they like autistic children repeat and repeat and repeat their interventions and try to suppress volatility
Name a single one. You demonstrate no sense of proportion -- bad for you, perhaps marvelous for your counter-parties.
We've already gone down the road too far to change paths now. Of course they will delay as much as possible.
The dollar and the other giral money deposit companies have only brought suffering to people. It's a mass psychosis, as bad as a big cancerous ulcer.
I don't mean to be argumentative or disrespectful, but my personal belief is that this is wrong. The Fed does not create market "bubbles". Bubbles are a feature of capitalism. The first economist to recognize this formally was Keynes. A mention of this is included in his "General Theory.." in the chapter where he discusses some of the defects in capitalism. While, generally speaking, the Fed does not create bubbles, they often have done little to calm "irrationally exuberant" markets, even though they might have. In the Greenspan era, I attribute this insouciance to Greenspan's belief that markets out of whack would correct themselves harmlessly and move spontaneously back toward equilibrium, Adam Smith style. Soros, however, has made the point that markets out of whack, if they are left alone, are more likely to move further out of whack than they are to spontaneously seek equilibrium. I happen to be a devotee' of Soros. I think there is plenty of evidence that Soros is right. [see for example, the "Soros Lectures at The Central European University.] The Central Bank which works hand in glove with the U.S. Treasury, has many tools in their tool kit, but by themselves they are not all powerful. However the Treasury, in conjunction with the C.B. -- these are really one operation made to look like two -- and together with the U.S. Congress, is, in fact, all powerful. They can create and destroy money at will, they can tax, they can side-track money in the form of bonds, they set the interest rate and they make the rules. They can spend without borrowing and borrow without spending. These entities have all of the tools they need. They are technically constrained by productivity. They are practically constrained, however, by the wisdom and fallibility of those who administer these agencies of government.
I think it's quite obvious what they have done with repo/rate cuts Sep Oct 2019 is exactly bubble creation We got lucky virus stopped it or it would go another 30% before blowing
Collapses??? Wow you really really need some perspective. We haven’t even had a bear market (20% down) in 12 years. By far the longest on record.
Everytime The Fed blows bubble every time it bursts and everytime the traders profitted massively from market movement.
If you mean that had the Fed not intervened to assure adequate liquidity in markets -- one of their main functions -- the markets would stop functioning well and there would have been negative repercussions for the equities markets, I can't disagree. But that would have been irresponsible action by the Fed having nothing to do with the fundamental reason for markets becoming overbought. The Fed and SEC may fairly be blamed for not acting to counteract a bubble that is threatening to grow too big. But is it incorrect to blame them for formation of the bubble in the first place? If you really want to understand the formation of market bubbles as a natural consequence of a capitalist economy* then I can not recommend too highly Soros's Second lecture at the Central European University. [see Amazon books] * "When Alan Greenspan spoke of irrational exuberance in 1996, he misrepresented bubbles. When I see a bubble forming I rush in to buy, adding fuel to the fire. That is not irrational. And that is why we need regulators to counteract the market when a bubble is threatening to grow too big; we cannot rely on market participants, however well informed and rational they are." -- George Soros, "The Soros Lectures at The Central European University", Pg. 33, 2010.