Wednesday, October 8, 2014
Here Comes The Feds To Save The Day!
(CERR Investments). Here comes the Feds to the rescue once again. The markets decline and the Feds writes new minutes to assure big industry that the ordinary investor is not going to make lots of money off of his bank accounts, money markets, bonds, or CDs for the "considerable time". A 6 month CD today is worth 0.117%. This is a green light to big industry and banks that the spread will stay the same for a while. The amount of interest banks loan ordinary individuals will remain greater than what we loan to the banks in term of our bank accounts. Now tell me how does this help the ordinary citizen? Are jobs being created due to this policy or is it just temporary jobs where health care can be cut (like Walmart). It will take a "considerable time" for ordinary investors to forget 2008 and the credit default swaps and loan sharking completed by the big banks. Ordinary investor is looking for a level playing field where inside traders are being caught, regulations are there to help the many instead of the few, and the Federal Government start hiring and creating jobs again.
(CERR Investments). So it appears the rest of world has come along and figured out that they also need to cut interest rates and keep bank deposit, CDs, and bond returns low and boost the rates or interest for stocks. Stock prices are inflated right now and you can see it in the absences of Fed policy. QE3 is coming to an end so the only game in town is to keep interest rates low. What a gamble. There is a problem? We have learn in the early 2000s and 2008 that if the ordinary investor begins to buy stocks big institutions will find a way to get their hands on it either through bogus investment tricks, insider trading, or plain old ponzy schemes. No More TARP! Be weary my friend and watch for markets to turn in the absence of new fed policy. Then you will see the true market. Buy the dips!