Is the Fed morally responsible for the stock market?

Discussion in 'Economics' started by JamesVU2000, Nov 18, 2013.

  1. The Fed has been holding people at gunpoint making them invest in risky securities. Who gets the blame and is there recourse if it fails?
     
  2. Bob111

    Bob111

    ---Fed morally responsible --

    :confused: :confused: :confused:
     
  3. gkishot

    gkishot

    It's responsible for the health of the economy, not the stock market fluctuations.
     
  4. When the stock market goes up, people spend and feel good, which improves the economy, which in turn improves the stock market, and the cycle repeats.
     
  5. why has walmart warned about earnings all year and needs to cut prices deeper?
     
  6. gtor514

    gtor514

    <iframe width="640" height="360" src="//www.youtube.com/embed/YTICKDjOHR0?feature=player_embedded" frameborder="0" allowfullscreen></iframe>
     
  7. I was not defending just telling him what could go inside the head of the person with a helicopter.
     

  8. i think your on the money with that statement with most bull markets. this one seems kind of fixed because the fed has killed cd's and US bonds and forced people into risk. i get jaded when you see no sales revenue growth ever and financial banks saying its based on the idea of PE's trading at higher levels because rates are going to be lower in the future. its shady when banks can put members onto the fed board and have an inside track and voice than also sell it to the public and be bailed out with public money too. i don't see this future expansion they all talk about and i don't think markets ever got the chance to heal. i do see them building over 55 developments, outside malls, and refacing older malls but that will only lead to minimum wage jobs after the work is done. the cost to borrow is so low that even if the building loses a little value in 20 years you made a killing on rents.
    i am curious does anyone see this big expansion happening that they keep talking about? i hope i am wrong but i don't see if its that easy to fix problems by having the fed buy all the US bonds and mortgages why is this the first time the US did it.
     
  9. Bob111

    Bob111

    +1. i'm with you and that's why i don't believe in any 'recovery' in US. not in real estate not in any other sector(maybe energy). BUT! markets are all time high, IWM is 30(!) % up YTD! and my money earns nothing in the bank..i have no balls to invest in this mother of all ponzi schemes. and judging by the volume-I'm not alone..
    it's not a first time for me,when i got all the letters right in that jeopardy game,but can't spell the whole word..oh well..
     
    #10     Nov 20, 2013