World Stocks Sink on Fear Fed Will Trim Stimulus (end of QE3 feared)

Greetings ATS. I just found today that the global markets are sinking in fear that the FED will taper off the 85 billion a month buying mortgage-backed securities. I don't have much to say about this, other than the fact that if the easing ends, it will not be good for investors. I wonder how long it will be until they decide to completely crash the dollar? I don't see how tapering spending will reduce the ever growing debts that are unpayable.

abcnews.go.com...

Fears that the U.S. Federal Reserve bank will begin cutting its stimulus to the American economy sooner than expected spooked world markets on Thursday, driving shares down. The Fed's announcement that it would maintain its $85 billion monthly bond purchasing scheme was widely expected, and cheered, by investors. But the bank's economic outlook was rosier than anticipated and could indicate that it will begin to reduce those purchases — a process known as tapering — soon.

Investors: "OH NO! We may not get free money anymore? Welp time to ruin the economy for everyone else"

reply to post by Krazysh0t


LOL! Yes there will be a lot of investors crying in their porridge. I see the updates every day about the economy and how things are always looking grim. How much longer ATS? Anyone up for predicting the date of the collapse? I will say that with China sending back treasuries to the USA (collecting on their debt), as well as Germany's repatriation of all of their gold bullion over the next 7 years, things are looking grim for the future of the economy. My prediction is that either the USA will come up with something revolutionary that will help the world (and get out of debt at the same time), or it will most likely crash no later than 2016.

It seems that the Stock market is trying to slap the governments face for doing anything that interferes with what they want to do. "Just feed us more money so we can make profits off the money while the government goes farther into debt." If the government doesn't do what they want, they will cause a drop, or blame a drop, in the stockmarket on the government for restricting them. I suppose the people running the banks and stock market think all Americans are dumb enough to believe them because they fear losing their savings that is invested in the market. They are right, most people will accept a lie as truth without asking questions if it is to their benefit. They feel that asking questions or not supporting the people creating the lie will negatively effect them. House of cards.

reply to post by rickymouse


I think you're right. Wall Street wants to push the "too big to fail" right up to the end. I wonder if there will be another crash like 2008, only worse. If the FED suddenly decides to slow those printing presses too fast, then Wall Street can collape the house of cards. If the FED inflates the dollar much more, it will not buy anything! Lose-lose no matter how you look at it!

They can't start tapering. Ever. Eventually it will be $150 billion a month and the Dow will go to 20,000 and we'll all be told that everything is fine and dandy and look at those stocks soar.

And the crash, when it comes, will be like nothing anyone has ever experienced before.

reply to post by InFriNiTee


This problem is not only a US problem. It is a global problem. The governments thought a global economy would be more stable and the ones crunching the policy did not understand that it can escalate to a global catastrophe. How can countries help each other when all their economies crumble. Since the balance of power can not easily change, I see many wars as a possibility if the countries with real assets and food supplies do not bow down to big powerful countries. This could turn into a big greedy mess. I don't know what will happen, maybe there are still rabbits left in the magicians hat but if there are, they are very sick or extremely mean rabbits.

To continue adding zeros on computers inventing money out thin air debases the currency. This is in effect a hidden tax on everybody which supports the investor class.

The stock market is overvalued by 50% or more and real GDP has been negative for decades if debt fueled growth is accounted for.

The fall when it happens will be stupendous and yes wars are likely outcome as well as revolution

Krazysh0t
Investors: "OH NO! We may not get free money anymore? Welp time to ruin the economy for everyone else"

I can't help but agree that is precisely what we're seeing here.

They are living the high life with roaring markets ...on the backs of our Children's children for generational debt building every day ..and threaten to throw the world record of all 2yr old tantrums if they don't get to keep at it. It reminds me of.......

reply to post by Krazysh0t


They have already converted their US dollars to something else like Gold or Yuan.

The Chinese will be here in the USA demanding to exchange $$$ of mineral rights and farm land. Of course George Soros, Ted Turner, the Rothschilds and other mega millionaires have been snapping up US farmland since the BANKS foreclosed and dropped the real Estate market into a large hole.

rickymouse
It seems that the Stock market is trying to slap the governments face for doing anything that interferes with what they want to do. "Just feed us more money so we can make profits off the money while the government goes farther into debt." If the government doesn't do what they want, they will cause a drop, or blame a drop, in the stockmarket on the government for restricting them. I suppose the people running the banks and stock market think all Americans are dumb enough to believe them because they fear losing their savings that is invested in the market. They are right, most people will accept a lie as truth without asking questions if it is to their benefit. They feel that asking questions or not supporting the people creating the lie will negatively effect them. House of cards.

occams razor Ricky, it's all part of the plan my friend. you can't have corruption without two parties being involved, govt. and bankers.

they wont taper anything unless their fate is at hand and it is as yet, not quite there.

reply to post by LittleBlackEagle


Seems there is a power struggle occurring in the world. The regular people will definitely lose.

rickymouse
reply to post by LittleBlackEagle

 

Seems there is a power struggle occurring in the world. The regular people will definitely lose.

i think at first it may appear this way, but in the end it will find a new balance, perhaps never before seen.

reply to post by Krazysh0t


The investors have put in their personal money in the company... There is a huge risk involving investments. The dividends themselves tend to be quite low-productivity - most companies pay around 0.5-3 dollars per every share, although shares can cost hundreds of dollars a piece. In order to earn a lot from dividends you need to hold a large amount of shares, although market fluctuations make it extremely risky. For example, if Apple stock price falls 1%, it already has lost the value it would earn from dividends (loss at the end) + people who actually would earn more signidficant amount from dividends are loosing 5 dollars per share (over 500 dollars is the cost of one, last year payout was 3 dollars per share, this year Apple has paid out quarterly, so around 12 dollars total per share. Although their stock price feel over 150 dollars from last years high reaching the bottom this summer, now it is slowly climbing up again.

I personally have several thousands of dollars invested in the stocks of different companies. A 10% stock price drop in these companies would result me losing hundreds of dollars of my invested money and 10% change in can happen in the matter of days, when some negative news come out. Usually the fluctutations are +- 0.5-3 % a day depending on company. Now think how much a person who has invested half a million or more would lose.

Just remember, when the easing stops and the inflation begins, The New York Times said, "Take your medicine. It's good. No really ..."

reply to post by LittleBlackEagle


I think you may be right on that. Many changes have occurred through mans recorded history and we now are a creation of all those changes. Changes to the food chemistry too fast can cause health problems but is that a natural part of things? Populations will soon be reduced significantly. All indications point towards that right now, including the consensus of the world leaders. Who survives is the only issue now.

Does it matter if the Economy collapses if you have already lived your life. Does it matter if the world will end in ten years if you have no offspring or don't care about your offspring and you only have seven years of life yet. I see that a lot of people think that way. I worry about my grandchildren having what they need to live but do not want them to be spoiled either. Too many people are spoiled in America, thinking that their desires are there needs. Many people want a richer life than their parents, they think that the grass is greener on the other side even though their parents frugal actions got them everything they needed and a little of what they wanted.

We should not be destroying this rare planet. There may be millions of these kinds worlds out there, but they are still one in a trillion compared to the planets that can not support life.

reply to post by Cabin

...Usually the fluctutations are +- 0.5-3 % a day depending on company. Now think how much a person who has invested half a million or more would lose....

You forget that during the Great Depression the Bankers wispered in the ears of the 'Chosen Few" what was going to happen and they got out at the peak and left the rest to take headers out the window.

CHAPTER TWELVE The Great Depression [SECRETS OF THE FEDERAL RESERVE By Eustace Mullins]
...Only the innermost council of "The London Connection" knew that it had been decided at this "mystery meeting" to bring down the curtain on the greatest speculative boom in American history. Those in the know began to sell off all speculative stocks and put their money in government bonds. Those who were not privy to this secret information, and they included some of the wealthiest men in America, continued to hold their speculative stocks and lost everything they had.

In FDR, My Exploited Father-in-Law, Col. Curtis B. Dall, who was a broker on Wall Street at that time, writes of the Crash, "Actually it was the calculated ‘shearing’ of the public by the World Money-Powers, triggered by the planned sudden shortage of the supply of call money in the New York money market."90 Overnight, the Federal Reserve System had raised the call rate to twenty percent. Unable to meet this rate, the speculators’ only alternative was to jump out of windows....

InFriNiTee
I don't see how tapering spending will reduce the ever growing debts that are unpayable.

"I just don't understand it... I use my credit cards for everything and my debt just keeps climbing and climbing!"

I'm sorry to be harsh, but spending is what got the US into the debt crisis. Common sense would indicate that STOPPING SPENDING is probably a wonderful first step towards tackling that debt.

Trying to spend your way to solvency makes about as much sense as pissing into the hull of a leaking, sinking boat in hopes the urine will displace enough water to keep you afloat.

reply to post by crimvelvet


Yeah, except it's governments all around the world who are in hock this time. So what good will bonds do? What are they going to dump their assets into?

reply to post by InFriNiTee


The fed already try to do that during the summer, and guess how the Markets responded, they got a hiccup and show the Fed what they could not, so the tapering of the QEs was halted.

The only what that the too mammoth to fail are surviving is due to that infusing of bailouts monthly, I mean QEs.