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To: eekitsagreek

As soon as the Fed stops with the zero interest rates,stops printing Billions of dollars of funny money every month,then look out,you will notice


28 posted on 10/20/2014 3:29:24 AM PDT by ballplayer
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To: ballplayer

Absent QE, it’s clear that the stock market will take a serious hit, fear over it ending had more to do with the wild gyrations last week than anything. Purchases requiring credit will grind to a halt as they did in 2009-2010 and jobs dependent upon those industries will start cutting back deeply again.

I’m not even entirely sure that the likely rate increases will benefit savers. Banks have gotten accustomed to giving crappy rates of return and it will lag. They’ll be battening down the hatches for more defaults on mortgages, since higher rates will mean fewer buyers able to qualify, with falling prices and much longer DOM leading to foreclosures taking off again.

They’re stuck with QE. It’ll continue until they’re forced to stop, and when it stops it’ll get ugly again quickly. They’ve just been staving off the inevitable, imho. Are people better set to deal with it now than they were in 2008? Those who were able to cut or eliminate debt with a secure income are, but such people are in the distinct minority. Most are worse off now than they were then.


29 posted on 10/20/2014 3:39:24 AM PDT by RegulatorCountry
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