http://www.cnbc.com/id/102132961 QE3 officially ends this month, but according to Janet Yellen (Fed Chair), interest rates may stay low "for a considerable time." Thoughts?
You still haven't learned the truth pickled. The truth is that there is no system. At the end of the day, it comes down to survival no matter what the "system" resembles Going to work or collecting berries or hunting animals, its all the same Running from wolves volcanos cops and bombs makes no difference -yuri
I'm not sure what you mean by this. There is absolutely a system and it is important we try to look at it as such. In a system there is organisation. There are goals, means to reach them and flaws. The basis is this, there is a system, does it attend to the needs of Man and society? If not, then think of something better. Get to the root of Man's needs and establish a working order to cater to them.
Perfection is forever. The universe itself is perfection. By using the concept of as above, so below and establishing the microscopic in the image of the macroscopic, we live in perfection. Sadly, we go against nature and destroy ourselves. If something occurs naturally, there is no desire or need to prolong it, when it is in harmony with the natural order of things, then that is perfection. No birth nor death. No arising nor ceasing.
Okay, here are my thoughts. I posted this on my phone originally while I had a lot going on. As they "end" QE, they'll stop ADDING bonds to their balance sheet, but they will replace the ones that mature (come due) for now. This is directly from the FOMC statement. So they're no longer going to increase the size of their balance sheet, but will keep it relatively constant until further notice. If they immediately began selling their holdings, there would be a crisis in the bond market that would spill over. Also, the federal funds rate is still near zero. These are estimated to rise anytime between early '15 to early '16, with median estimates saying summer '15. I don't think we'll see a liquidity-crunch just yet, but the seeds have been sown. The honest truth is we've never had monetary policy like this before. It's difficult to make any concrete predictions (as always). I sold my equities in late July, and they've since declined about 5%, which isn't a huge deal, but I'm glad I did it. That being said, for all I know their will be a 20% rally in the next year. Normally I'd never be into the market-timing business. I'd rather just buy, contribute, and hold for long periods, but this shit is scary. It will be an interesting time to read financial news over the next 12 months. Maybe it'll be a tiny, 10-15% correction. Maybe 30%. Maybe 50%, like 08. Maybe worse. Maybe it'll hardly matter.
This, I have to vehemently disagree with. We've periodically had absolutely horrible monetary policy (time will tell about the recent policies), but the United States has always had a dominant capital market. A dollar in the market at 1980 is worth $20 today, before dividends. After tax, inflation, and dividends, it's probably 5-6% per year compounded. Since then we've had countless wars, Alan Greenspan, Ben Bernanke, two generations of Bush, etc. etc. etc. The track record extends back through the 1800s. Literacy, standards of living, etc all improving. The long term bet against the United States has been made throughout our history, and it's always wrong. Bingo.