What in God’s name is holding the markets up? You would think people would withdraw their funds and begin to convert to tangible assets. ????
> What in God’s name is holding the markets up? You would think people would withdraw their funds and begin to convert to tangible assets. ????
A Straw man with promises of hope and change with the MSM lying for him daily.
The treasury is pumping in $85 billion a month into the stock market, a market that is only $15 trillion in the first place. In other words, the fed is putting in 8% ($1.035 trillion) each year for the past 5 years. According to some report the fed has put in over $3.2 trillion.
You’ve heard this as “Quantitative Easing (QE)”.
The big question is if the fed is propping up the market with 8% per year, why hasn’t the market grown by at least that much?
I don't know. From what I've heard it's the combination of the Fed printing money at 80+ billion and month and keeping interest rates so low that there's no reason to invest in bonds, so investors gravitate to the stock market.
I'm like you-- I thought the market would have collapsed a year or more ago. The gains have been so significant I've taken a portion (25%) of my 401k and put it back in normal risk. *Gulp!*
>> “What in God’s name is holding the markets up? You would think people would withdraw their funds and begin to convert to tangible assets. ????” <<
.
Lots of investment advisors have turned government shills, and are predicting massive gains for investors.
What they’re not telling is that when the facade cracks there will be no opportunity to turn paper investments into liquid assets.
Profits. The bottom hasn't fallen out yet. It will -- but it hasn't yet.
What in God’s name is holding the markets up? You would think people would withdraw their funds and begin to convert to tangible assets. ????
*******************************************************
What is actually happening is the devaluation of the dollar(deliberatie action by Government/FED). This means that prices of everything go up, and that includes stocks, not just food, gas, etc. It’s just the market reflecting that it takes more dollars to buy the same amount of stock.
Hence it’s not that stocks are so great, it’s that the dollar is so bad. The only thing saving us so far is that the Dollar is still the reserve currency of the world, and other countries are bad off too - many even worse than we are so far, as well as the normalcy bias of the dollar being seen as the safe currency to hold.
When the dollar crashes(as it appears Obama’s masters want, just like when the British Sterling lost reserve currency status, the USA will be in even more trouble than it already is).
Simulation studies have shown people will prop up markets against not just lousy odds but against total certainty of collapse until the actual collapse.