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View Diary: Spot the question Boehner didn't answer (80 comments)

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  •  Well, as long as the Fed keeps blowing (1+ / 0-)
    Recommended by:
    eXtina

    ...up the stock market bubble with easy money -- it's all good for Government Sachs.



    Denial is a drug.

    by Pluto on Thu Apr 11, 2013 at 01:18:12 PM PDT

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    •  Huh (1+ / 0-)
      Recommended by:
      Pluto

      Taylor Rule suggests Fed rate should be about -6% right now. Which is to say interest rates are 6% higher than they ought to be.

      It isn't Fed rates that are blowing up the stock market. It's corporate profits driven by low wages.

      Economics is a social *science*. Can we base future economic decisions on math?

      by blue aardvark on Thu Apr 11, 2013 at 01:24:40 PM PDT

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      •  Quantitative Easing. (1+ / 0-)
        Recommended by:
        milton333

        I read MOTs Diary.

        Low wages are driving corporate profits.

        That's not what's driving the stock market. The bad jobs report is blowing up the stock market, because we all know that means the Fed will QE more money into the stock market -- so we invest along with the Fed.



        Denial is a drug.

        by Pluto on Thu Apr 11, 2013 at 01:40:12 PM PDT

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        •  QE a trivial amount of money (0+ / 0-)

          compared to the total market cap of the NYSE + NASDAQ.

          Economics is a social *science*. Can we base future economic decisions on math?

          by blue aardvark on Thu Apr 11, 2013 at 01:42:00 PM PDT

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          •  $85 billion a month (1+ / 0-)
            Recommended by:
            milton333

            ...isn't much money anymore, i guess.



            Denial is a drug.

            by Pluto on Thu Apr 11, 2013 at 01:46:03 PM PDT

            [ Parent ]

            •  Nope (1+ / 0-)
              Recommended by:
              milton333

              Market cap of NYSE was $14T in 2011 (latest I can find). It's up about 15% since then so $16T.

              Add another $4T or so for NASDAQ. That makes $20T.

              1% of that is $200B. It takes 3 months of QE to add up to a 1% gain, and that's if 100% of the QE money is going directly into equities.

              Which it isn't.

              Economics is a social *science*. Can we base future economic decisions on math?

              by blue aardvark on Thu Apr 11, 2013 at 01:56:10 PM PDT

              [ Parent ]

              •  And, to think... (1+ / 0-)
                Recommended by:
                milton333

                $85 billion in sequestered austerity in 2013 is about to throw the US into a deeper second recession.

                Math.

                Can't live with it, can't make it a felony.



                Denial is a drug.

                by Pluto on Thu Apr 11, 2013 at 02:10:13 PM PDT

                [ Parent ]

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