Powell does not see signs of bubbles brewing..WELL OF COURSE HE WOULD SAY THIS

Discussion in 'Wall St. News' started by S2007S, Nov 14, 2019.

  1. S2007S


    Of course he wouldn't say markets are in a bubble. Why would any fed chairman say or admit the US economy is in a bubble. This is just foolish talk, everyone knows its after the crisis and collapse that they admit then reason for the day of reckoning. He is not going to put the longest bull market in history at risk now, so anything he say is going to be delightful, sweet, innocent and dovish.

    ET180 likes this.
  2. S2007S


  3. He's right though, when everything is a bubble, nothing is a bubble.
  4. Specterx


    A bubble is when asset prices reach a level that can't be remotely justified by even the most optimistic (reasonable) forecasts. The only major potential bubble I'm aware of is in private-market VC unicorn valuations - and the WeWork fiasco, as well as the string of busted IPOs this year, show the public markets remain fairly cautious/rational when it comes to these companies.

    Government debt is not a bubble nor is it some kind of economic threat. It's possible that large government deficits might become an economic problem a number of years down the line, but at the moment it's entirely hypothetical.
    drm7 likes this.
  5. imjohn


    Just another bullshit artist.

    Similar to Bernanke in November 2007 telling congress the U.S. economy did not appear headed for recession... https://www.reuters.com/article/us-...-not-recession-bernanke-idUSWBT00789120071108

    US may or may not see a "day of reckoning" within the next year, but I don't expect the fed chair to call for one, or even acknowledge when it's happening in real-time, until it's painfully obvious to everyone.
  6. S2007S


    They have no fu<King clue.


    JANUARY 17, 2008 / 10:48 AM / 12 YEARS AGO
    Bernanke: Fed is not forecasting a recession

    WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke on Thursday told lawmakers that even though the U.S. economy is facing a difficult combination of circumstances, the Fed is not forecasting a recession.

    “The U.S. economy remains extraordinarily resilient,” the U.S. central bank chief said in answering questions after testifying before the House of Representatives Budget Committee.

    GregorySG9 likes this.
  7. S2007S


    GregorySG9 likes this.
  8. S2007S


    From the wallstreet Fu#King journal

    No Recession in Sight
    Mickey D. Levy
    Updated Oct. 9, 2007 12:01 am ET

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    • TEXT

    Despite recent financial turmoil and a dismal housing market, there are key reasons why the economy will continue to expand, albeit at a modest pace, and not go into recession. Businesses are well poised to absorb a period of weaker product demand and are unlikely to significantly alter their hiring and investment behavior.

    GregorySG9 likes this.
  9. imjohn


    Whether these clowns do or don't know what's up.. I don't expect them to come and openly say anything that could negatively impact the market, as they know such a statement will hasten the inevitable, cause the decline in massive 401ks, and create hysteria.

    Some bearish things
    -Market value to GDP is 146%
    -GDP is projected to slow down into 2020 and beyond

    The bullish thing
    -Fed is buying $60B assets /month into 2020 Q2, and just cut rates 3 times so thank them for the recent all time highs and collapse in volatility.

    They used to just do the bullish things as a reaction to a recession, but now they are actively focused on "prevention". In other words, do these things before any downturn occurs, and perhaps downturn will never happen. Unchartered territory.

    Anyhow, just one man's opinion, may be wrong or right
  10. zdreg


    You and nobody else can determine the tipping point when government deficits becomes an economic problem. It may happen tomorrow.

    To say at the moment"it is entirely hypothetical" is the height of voodoo economics.
    #10     Nov 14, 2019