Liquidity
Trying to force bank liquidity right with low interest rates is like trying to force someone to talk by squeezing their neck tighter and tighter. Eventually you’re just going to kill them and get no response.
Trying to force bank liquidity right with low interest rates is like trying to force someone to talk by squeezing their neck tighter and tighter. Eventually you’re just going to kill them and get no response.
These people don’t even know what they are trying to fix. The free markets just let the larger commercial and investment banks price default risks into the market with the lower valuations in the purchase prices. Banks and investors have both increased their leverage in the markets substantially in the past 12 odd years thinking … Read more Pointless Bailout Anyway
As long as everybody continues to think this problem started with housing bubble, when it started with the stock bubble…they are just going to make the wrong decisions and make things worse. Investors are looking for the “boogeyman” in the markets now…when investors were the boogeyman in the markets to begin with.
If Einstein were asked to solve the wrong problem, even he would come to the wrong conclusion. It is my opinion that this is what is happening to the powers that be in the U.S. Federal Reserve and Treasury. Yes, there was a housing bubble, which preceded the current economic problems, but it is NOT … Read more The problem with the current economic solutions
1. Nobody seems to be pointing out that many short sellers use the excess proceeds after margin, to go long something else. 2. Though it keeps getting mentioned that shorts can create synthetic positions in the derivative markets, WHY would you want to, when a large portion of the selling pressure in the underlying market … Read more Short Selling
Until they realize this actually stemmed from the stock bubble, and not the housing bubble ….they aren’t going to get around the problem. They will just keep rewarding those that made irrational decisions and punish those that made rational ones to stabilize overpriced markets…and the cycle continues. Over the last 8 years, this was easy … Read more Housing not the problem
If a brokerage is refusing to supply the stock for the short sellers so they can short the stocks legally, doesn’t that kind of seem like market manipulation right there? I hold a large chunk of stock, and then have the ability to artificially limit selling pressures on that stock….Hmmmm.
If you look at a long term chart going back to early 1900’s, the overall general uptrend in the DOW should have put us at 10,500 right about now. This would be an historically normal range along the long term trend line, but the markets never fully corrected after the Nasdaq bubble burst. Investors rolled … Read more Way Overpriced