9.13.2012

QE: "Take printer out of box with the out tray facing the window ...."

Comment: John Clarke official site

Posted by Jim Peet at 9/13/2012 09:05:00 PM

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3 comments:

  1. Jim PeetSeptember 14, 2012 at 9:42:00 AM CDT

    Cramer defends with my brief response: Cramer: In Praise of Bernanke's Move

    "We're only just now working off that massive housing inventory, which is why the stocks of the homebuilders are roaring," Cramer said. "We are just now seeing an increase in housing prices, which then creates a better mindset - a wealthier mindset - for the two-thirds of Americans who own homes."
    When home values increase, Cramer said most homeowners "feel richer," leading to increased spending. In turn, retailers like Macy's (M) and Pier 1 Imports (PIR) or Lowe's (LOW) benefit from the increased sales.
    In the end, Bernanke's plan may take time, but Cramer thinks it will help spark economic growth eventually. In the meantime, investors can benefit from higher share prices almost across the board.

    My response: I love that my stocks are going up up up. My sense is that the rise of stock prices is artificial and temporary. I fear that QE has long term negative implications to the entire economy.

    ReplyDelete
  2. Jim PeetSeptember 14, 2012 at 11:31:00 AM CDT

    More on QE3: Stock Picks for the QE-Infinity Market Rally

    "I think Bernanke is going to create massive inflation," he posits. That inflation is going to ding the low-end consumer hard

    On stocks:

    "He came out with literally his Tommy gun and he slaughtered all the bears." So says Brian Sozzi, chief equities analyst of NBG Productions of Ben Bernanke's stunningly aggressive monetary actions announced Thursday afternoon.

    Abuse of "literally" ... but still a good point

    ReplyDelete
  3. Jim PeetSeptember 14, 2012 at 2:27:00 PM CDT

    Does Quantitative Easing Mainly Help the Rich?

    This is disturbing:

    It said that the Bank of England's policies of quantitative easing - similar to the Fed's - had benefited mainly the wealthy.
    Specifically, it said that its QE program had boosted the value of stocks and bonds by 26 percent, or about $970 billion. It said that about 40 percent of those gains went to the richest 5 percent of British households.

    ReplyDelete

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