Come on.... would the fed actually admit there is a bubble, BUBBLE ben bernanke didn't even know there was a housing bubble while it was right in front of him.... greenspan didn't see the dot com bubble, so why would yellen of the federal reserve admit there is a bubble, there is a global bubble in ALL ASSET classes....the bubble is here because of the FED, THEY CREATED THE BUBBLE, the next crisis that is coming is all because of the fed, they should admit it now because they will have to admit it once on capitol hill again after global markets start to collapse...the fed created this false market place, meanwhile they believe they fixed the crisis, you can't fix a crisis with more debt, fools only believe that...we haven't learned, the only way the US can grow its economy is thorough asset bubbles and QE, there is ZERO ZERO ZERO ZERO organic growth left in the US, it all comes from stimulus and zero interest rates....we had the dot com collapse, the financial crisis and the next one will be called the fed crisis or fed collapse because they are the ones who created this new and upcoming crisis that will have no way out of... Getty Images Janet Yellen Federal Reserve Chair Janet Yellen on Wednesday warned that equity market valuations were "generally quite high," though she said the Fed was not seeing the hallmarks of a bubble. She also noted that the Fed was watching the issue closely. This is a developing story. Check back for updates. Earlier Wednesday, Yellen said the Fed and other banking regulators have made significant progress in correcting flaws in the financial system that triggered the worst banking crisis in seven decades. Banking regulators are remaining "watchful" for any areas where further reforms may be needed, she said in remarks at a financial conference. Yellen cited the need to address the problem of "too big to fail"—the perception among investors that some institutions are so large that the government will step in and save them if they get into trouble. She said the Fed and other regulators are taking steps to make sure that the collapse of even very large banking institutions can be handled in ways that don't jeopardize the stability of the entire system. Yellen's comments came in a joint appearance with International Monetary Fund Managing Director Christine Lagarde at a conference sponsored by the Institute for New Economic Thinking. Lagarde told the group that a recent IMF report found that risks to financial stability around the globe are rising with increasing risks at non-bank financial institutions and in emerging market countries. "We need to build a financial system that is both more ethical and oriented more to the needs of the real economy -- a financial system that serves society and not the other way around," Lagarde said. Yellen said a well-functioning financial sector promotes job creation, innovation and economic growth but that problems arise when the incentives become distorted, prompting bank executives to pursue risky strategies to increase profits. "Unfortunately, in the years preceding the financial crisis, all too many firms took on risks they could neither measure nor manage," she said. "The result was the most severe financial crisis and economic downturn since the Great Depression," the Fed chief said, noting that 9 million American lost their jobs and roughly twice that many lost their homes. by Taboola
They are quite high, but where will people place their money in zero interest rate markets ? These dumb FEDs I tell ya. They create the problem, then warn you of the effect six years later LOL
This is not surprising. The fed has created "boom" and "bust" cycles ever since the bankers met in Jeckyll Island over a hundred years ago. The recent bull run has created margin debt of unprecedented proportions, over $476 BILLION thus far. Margin loans are "callable" loans and can be cancelled at anytime. "INVESTOPEDIA EXPLAINS 'Call Loan' Call loans use securities as collateral for the loan. It is important to note that a call loan can be canceled at any time." I have no idea what reasoning Yellen will use to blame for the next "crisis" however when the margin call loans come in, the stops will get hit, and the suckers who buy at the top will lose, again.
Both nominal asset values and earnings are hurt by the strong dollar. This should have a quieting affect on the market going forward. Markets are usually wrong but it takes a while for the market to realize it. Be patient. I would expect the dollar to remain relatively strong for at least the next several years and quite possibly well beyond that.
Remember all those complaints about the fed wrecking the dollar. Well get ready for all those complaints about the dollar being too strong. At least there is one thing to learn from this: traders are idiots!
And thats the problem, the idea of where are people going to find returns is the reason were headed into this collapse, with zero interest for savings on millions and millions of accounts means people have to go out and and find returns only in the markets or in real estate, my question is why do people HAVE TO FIND RETURNS on their money? I find it completely amusing how the elite have to find returns on their money, what about those millions of accounts who aren't in the market who are now getting 0% on their savings? Do you think these people want to put in their life savings into a market that can be up 4% one month and down 6% the next? No these old timers who have their life savings want a simple risk free return, the fed took that away from all them by giving in and bowing to wall street with zero % interest rates that only make the banks stronger and the elite and rich wealthier all while giving nothing to those who actually saved for a living and wanted just a simple 4-5% a year return on their money sitting in a CD or savings account, was that too much to ask for? Meanwhile 4-5% returns on your CD are still considered historically low compared to where savings were over 30-40 years ago...enough is enough, the fed has created the next crisis and this one is going to worse than the one we just had, there is no fix to this crisis or the last crisis, they should just let the economic cycle and free markets let it do what it has to do, if it mean double digit unemployment and a collapse in the stock market so let it be, if it means a 4 year recession let it be, if it means a decline in corporate profits and earnings then let it be, we can't keep pumping the system with worthless dollars thinking thats going to save it, its not, the fed can keep on doing what they are doing but its not going to change a thing, they have made it even worse, but the world won't recognize this until after the crisis is here...let the free markets for once just do what they need to do and stop intervening in the market place, this time its not different and never will be different.......
you could see bubbles written all over the housing market back in 2006-2007, you can see bubbles today but no one wants to take notice, they would rather ignore the fact than try and understand what is really happening....trust me there is a bubble..
Ok, you should trade on this conviction. Very few hedge fund managers caught the housing plunge-- but those who did made a killing. good luck! surf