Topic: Fed Considers Buying Stocks - page 3. (Read 2287 times)

What they will do, if they loose ? Buying stocks not always give profit. They will buy a lot and then loose all investment ...  Just imagine how angry will be Obama in Whitehouse, when receive news, that Fed loose some hundreds millions yesterday. 

Central banks are publicly or privately owned, depending on the country.  But 'private' doesn't really mean private, and 'public' is never quite the same as a govt. department either.  The reason its status is never clear is that the system is based on deception.

Since central banks hold the monopoly on money issuance, granted by the public, they can hardly justify doing anything on pure profit motive.

I think whatever a central banks does to prop up selected shares can only have a temporary effect, in the final analysis.  Companies 'supported' by central banks tend to get fat and lazy, and economies that have these supports tend to become uncompetitive, and their currencies tend to be unstable.

In fact, if you take a cynical line, this very same type of thing, the direct support of companies by central banks, was the poison pill placed into the Japanese economy by the immediate postwar American caretaker administration.  Over the next decades, this systemic 'conflict of interest' ensured Japan would serve as America's financial and economic vassal rather than true competitor.  This means that US elites certainly know better.  That they're considering swallowing this pill may point to desperation.

The goal of the central bank is almost never to make money.  The publicly stated goal is almost always some kind of public good.  The real goal is always to stabilize the state-bank alliance to extract wealth from the rest of the economy by issuing and propping up financial assets.

I don't share your audacity, but only because the Fed is a private company. They're allowed to do that shit. And if they lose all their money, they'll print more and fuck us all over.

The other way to think about it is that the Fed is sick of losing value on their conservative dollars on hand (just like the rest of America) so they're turning to the stock market to make some return.

Scary indeed. Will the voting public do something about it? No. None of them care. And if shit gets worst they'll just blame the party of whomever is President at the time. Sad shit, for sure.

Its puzzling that such a thing is allowed but the USA never seizes to amaze when it comes to economic control.
The market is already inflated for different reasons and having the FED involved should just make the amusement park ride that much more swingy.

The stock market will most likely get permanently frozen and Bitcoin could go that route as well. We will have to see how this affects the comfortable people.

As if they did not already do that anyway.    

But now that they publicaly announced it, and probably accelerate the process the stock bubble will grow increasingly big (and inevitably crash at some point). And all that printed money will lead to a lot of inflation and it's just all going to become one massive shitstorm that would make the 2008 financial crisis look like a joke.


Bitcoin would be worth more in dollars but not neccesarily in goods.   

So a Bitcoin would be for example $25,000,000 but a bread would cost $41,000 so you wouldn't really gain much from it.   

Except it takes the market a while to respond to the inflation so you might me able to be quick enough to profit from it. If you can quickly buy items in high demand that don't spoil very fast for a price that is relatively low compared to what it should be due to all the printed money, than you get more value from your Bitcoin.       

However when the Feds do this the trust in the dollar would collapse so people might spend actual money on buying Bitcoin which might rise the actual purchasing power by a lot.   

Although I wonder what would happen if enough idiots sell their Bitcoin too cheaply to the Feds and the Feds will end up having like 10 million Bitcoin or more.     

Will they be able to control and destroy the Bitcoin market as the ultimate whale? I don't know. I really don't know if one person holding a lot of Bitcoin can harm Bitcoin. I think it might, but not sure.

If the Fed does buy the stock, that is the end of the US economy as a free market. that will be similar to Soviet Union.

Here's a funny thought. Will you all be happy if the Federal Reserve declares that Bitcoin might be a good investment and announce that they are buying and will be holding for the long term?

What would it mean for Bitcoin and the Bitcoin economy if "money can literally be printed" into the Bitcoin market now?

Jeez, I knew it was bad but I didn't know that is was THIS bad. The fed saying that they might want to start buying stocks is a sign of massive economic regression, and for anyone reading this that doesn't know all of this yet, it basically means that the institution that prints all of the money for the American economy is considering buying stocks, meaning that money can literally be printed into the stock market now.

A real shit show. Great.

Since Janet Yellen has confirmed that buying stocks is on the table for the Federal Reserve, what can we say, if not remain speechless?

Let's see, I guess the simple explanation is that the elites have become increasingly naked and desperate in their attempts to support what remains of the global asset bubble, to hold on to the last hopes of keeping their power and privilege.

However, I have considered the possibility that holding on that privilege is not strong enough a motivation for the sheer audacity and desperation of these acts: if the global asset bubble results in a true hard landing, even if that is ultimately a not-so-bad outcome for the world among all the possibilities at this juncture, it may be very bad indeed for the financial elite.

MUST maintain stability...  MUST maintain stability.