Paper currency is a belief. When people believe in your currency you can buy stuff with it. The inflation comes later when your currency is adjusted downward and foreign products cost more, which in turn raises domestic prices also.
All these economic theories dont mean squat. Well a Phd at FED will say one thing and a Phd at some consulting firm will say the opposite, and they both went to same business school. Its no more than scientific or quantitative then vodoo or bone throwing to decide correct direction. So buy whats going up and short whats going down - its kinda idiotic but thats all hehh. The price on the ticker represents all those vodoo opinions and/or learned ones also
lol I seriously never understood why the fk anyone would think just because some bloke has a phd it means he will be able to adapat and make money consistently, and so should be given 6figure salaries instantly! :eek: lol Im 19, started trading at 18, and have managed to absolutely thrash the fuk out off all the hedge funds and bank traders out there... But the economy wont ever learn, and they will always give the high responsibility jobs to a bunch of nerds and geeks who have no logic or real grasp how how too make money, and how the economy and markets actually work. lol
that's also a big problem that got us into this mess...our government has been the biggest SUCKER since the bush admin. a group full of book smart people who know nothing about being street smart. "wheres the 180 million" AIG responds...."uh, YOU GAVE IT TO US" !!!
Its amazing how traders pay attention to those vodoo practitioners. They have no idea what they are talking about. I come from a design engineering background and the design laws and principles are same in Africa, Europe, Asia, in the sea or even in space. The only major difference is application. Engineers are the true creators of wealth and modern life and look what they get paid compared to those economics vodoo Phd's
Stagflation all the way! It should obvious even to a blind man that Government either doesn't know what the hell it is doing, or refuses to take the steps required to clean this mess up. :eek:
The AIG bonuses are small potatoes and a smoke screen. The real question is why did AIG fork over all those tens of billions to its counterparties in the manner it did. Note that Paulson's alma mater, Goldman Sachs, got the biggest chunk; Paulson's a crook and a conspirator in the biggest scam in history; he was their inside man. This whole CDS thing was conceived as a can't-lose ripoff from the get-go. If Obama wants to show us he's sincere he can go after the perps in this plot. He probably won't because he'd end up indicting the entire prior administration. Let's see now... scanning what I just wrote for bias.. Nope - looks 100% even-handed and well-researched to me.
I did very well today switching over to gold stocks like AEM, RGLD after the announcement. Trading FAS FAZ BAC HIG, etc many times during the day. So the question is what's next??????? I do not look for next week, one day at the time, keeping 1 or 2 issues overnight. This is what I see now: 1. SPY hit ma-50 today. Look at the chart, it came down after it hit ma-50 in the last 2 months. 800 is a strong resistance. hourly chart looks overbought and top/outside the BB. Daily bar also touched top BB today. 2. Gold looks strong. GLD formed a strong bullish engulfing candle today. Trading but not buy and hold. 3. Oil: USO closed over ma-50 again but couldn't go over yesterday's high much. Double top? Oil goes with the market now so trading with the market. I trade UCO, not USO Daily chart showing C&H pattern and it's at the rim of the cup as of today. 4. Homebuilders: Rates will be lower so it's a good time to trade this sector. I traded URE TOL today. I will accumulate URE on pull backs. Please trade, do not chase. Cramer likes to tell people to buy when stocks already had a good run. Do the opposite. Interesting that GS was $106 today. Buffet will make his profit shortly. The media has been laughing at him!!! So many opportunities to trade, longs and shorts. Good luck to all.
lol Mate im not rich. Ive never ever claimed to be. If you look at my journal ive always been totally honest about how poor i am actually. But the difference between me and them is that they all get 6figure salaries no matter how crap they trade! And the money they gamble with isnt even their own, its simply money that they get given by the firm. How many of them do you really think would dare ever trade with their own money??! :eek: The justification that i have that i was way mroe sucessful than them was teh amount of % profit return on my capital. (since a guy will a 1million account who makes 10k in 1day has done extremely crap compared to a guy who has a 10k account amd makes 3k profit that day. And the millionaire who wasnt even risking his own money had a huge huge pyschological safety advantage to the guy who had just 10k) However from June 2008 onwards i made a living from a starting capital of just £759. (made just under 30k profit from then to december) *And due to very high living costs last year, and the fact that i ive lost about £5,500 this year, while still having £1,000+ pepr month living cost, im now down to £800/£900 and having to make a living trading from just that so i dont starve (not a joke or exageration)! And so that is why i feel i have earnt the right to call the traders crap, who play for hedge funds and banks with free money, and yet still managed to lose money/make barely a few % over the entire year, since i extremely doubt anyone of them could still be making the profit im making if they were in the situation that i am in! :/ I dunno why your launching a personal attack against me though mate, since the thread is about what the fed actually did today.