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To: plangent
You hit the problem right on the head. There is not any tangible value in equities at this time. The value is completely fake.

Those that want to continue the charade ask Berneke,"But why doesn't the Fed pay attention to falling gold and commodity prices, which are throwing off deflationary signals?"

Berneke has been viewed as an expert on the depression. He believes the reason for the severity was the Fed tightening money access. As a result he has been pumping $85 billion/ month to keep access open.

The problem is that did not allow the essential problem of the economy to work itself out...DEBT.

Now he has maxed out the Fed balance sheet and knows must stop QE'ing. This means we are about to experience a deflationary economy similar to the great depression as households and businesses reduce their debt. When this happens where should your assets be placed? Equities...nope. Bonds...nope. I am going with cash. And you can call me economic ignoramus too.

5 posted on 06/29/2013 7:02:20 AM PDT by vg0va3
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To: vg0va3

why would you go with cash?

(Honest question)


8 posted on 06/29/2013 7:11:38 AM PDT by xzins (Retired Army Chaplain and Proud of It! True supporters of our troops pray for their victory!)
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To: vg0va3
I am going with cash. And you can call me economic ignoramus too.

Really? Cash as in fresh from the printing press with nothing to back its value? I bought 100 OZ of silver coins on Thursday at a little over $19 per oz. been waiting for it to get under $20 for years.

11 posted on 06/29/2013 8:17:04 AM PDT by thirst4truth (www.Believer.com)
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