Dow at 14k

morekaos said:
This is what I meant by the government blowing tons of money prolonging the cycle.  What a waste...
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Actually it helped because it took homes off the market and once inventory went down, prices went up - solving a lot of problems. A few more foreclosures are not going to make prices plummet again.
 
All it did was delay the inevitable.  Zombie owners who should have been out of those houses long ago were subsidized by OUR TAX MONEY.  If the markets were allowed to clear the inventory of this dead wood in 2009 the price recovery would have been faster in coming and normalization of prices would have occurred even sooner.  This was an exercise in foolish waste with the same predictable outcome.  
 
morekaos said:
All it did was delay the inevitable.  Zombie owners who should have been out of those houses long ago were subsidized by OUR TAX MONEY.  If the markets were allowed to clear the inventory of this dead wood in 2009 the price recovery would have been faster in coming and normalization of prices would have occurred even sooner.  This was an exercise in foolish waste with the same predictable outcome.
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It's not OUR TAX MONEY. It's the governments. And no, removing inventory and reducing interest rates and raising rents (through reduced inventory) were far more effective in causing a recovery than letting everyone default would have been.
 
Bank of America?s monthly survey of investors showed a dramatic rise in confidence in August, with a net 72pc expecting growth to accelerate over the next year. It is the highest in reading since 2009.
Almost everybody expects bond yields to rise as deflation fears evaporate, with just 3pc still worried about the risk of an economic relapse. Managers have slashed their bond allocation to a 28-month low.


http://www.telegraph.co.uk/finance/...-as-US-margin-debt-reaches-danger-levels.html
 
morekaos said:
I too have put a hedge trade on with the VIX, and entirely left the long end of the bond market.  We all know the government is running out of steam with QE infinity and that the delusion of 0 inflation is another government lie (I can't eat my I-PAD).  The invisible hand will become a fist and force rates higher, eventually.  I do think this is a net positive intermediate term and will push some inventory back into the housing market.  Clear that overhang and things will normalize faster. The only thing the government has done is blow a ton of taxpayer money "prolonging"  the cycle not "averting" it.
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http://www.cnbc.com/id/100966867

Will US yield spike derail tapering plans?

continued selloff in U.S. government bonds could force the Fed to rethink when and by how much it tapers monetary stimulus, according to one strategist, after 10-year Treasury yields spiked to a two-year high on Thursday.

"The rapid rise in yields could make the Federal Reserve nervous especially if it nears the 2.9 percent mark," said Kathy Lien, managing director of FX Strategy at BK Asset Management.

"If come September, 10-year Treasury yields are at 3 percent or higher, the amount of reduction in asset purchases could be smaller and the Fed will downplay expectations for additional tapering. December is still an option but its proximity to the holidays makes it a less desirable time to reduce stimulus than September," she added.

Told ya
 
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