the cow's about to be slaughtered and no matter that there will be no more milk for us all to drink now that the federal reserve has committed $80 billion dollars a
month to mortgage backed security bonds. the fed's said they did it to spur the economy....to get people to start borrowing money to buy houses again.
if the housing market cranks up, then construction and all things tied to the purchase of a house goes up too. furniture, accessories, more beer for the construction workers...everything. $80 billion per month is a lot of money for lenders to loan. the only problem is they won't.
not that they won't have it to spare...it's just that a lot of people have bad credit or a foreclosure or bankruptcy on their records. they won't qualify to get their hands on any of that money....even if they do qualify. many won't want to borrow because of the economy. they don't feel too sure about things yet.
they don't feel sure about the job market. they may get laid off. if they're self-employed...they don't feel confident in that business will come in enough for them to afford a new house. so they wait. what will lenders do with all of this money on hand? they can't loan it out...so they'll park it on the stock market.
this artificially drives up the stock market. artificially because when the market does come back...lenders will pull their money out and thus pull the rug out from under the stock market. the whole thing will crash back down to below 10 thousand since it is still primed with previous quantitative easement money from the last time the federal reserve did the same thing.
it didn't work then for anyone but stock broker's and with artificially inflating stock portfolio's in investment portfolio's for awhile....hardly worth destroying the country over for anyone...even giddy stock brokers.
the giddy stock brokers will make a lot of money in the short run...but then have to pay it back with all of the rest of us because the federal reserve loaned us that money...they didn't just give it to us. yep, those people making money now off of qe3 will pay some of it back in taxes.
because of the size of these "gifts" to the lenders...taxes can't be paid back in just one lifetime. no, it will take several if not more lifetimes. the lifetimes of your kids and grandkids to pay back if ever. that's a lot of money...those stock broker's must not have any children or grandchildren. although i can't blame them for taking advantage of this manna from heaven today.
no, their great great grandchildren are going to be mad as hell at them for leaving them in so much debt 20 to 50 years from now. i hope they make enough to get really, really rich right now and then put a huge chunk of it away...because their future generations will be really, really poor and mad at them if they don't leave them anything but a lifetime of debt behind.
if the housing market cranks up, then construction and all things tied to the purchase of a house goes up too. furniture, accessories, more beer for the construction workers...everything. $80 billion per month is a lot of money for lenders to loan. the only problem is they won't.
not that they won't have it to spare...it's just that a lot of people have bad credit or a foreclosure or bankruptcy on their records. they won't qualify to get their hands on any of that money....even if they do qualify. many won't want to borrow because of the economy. they don't feel too sure about things yet.
they don't feel sure about the job market. they may get laid off. if they're self-employed...they don't feel confident in that business will come in enough for them to afford a new house. so they wait. what will lenders do with all of this money on hand? they can't loan it out...so they'll park it on the stock market.
this artificially drives up the stock market. artificially because when the market does come back...lenders will pull their money out and thus pull the rug out from under the stock market. the whole thing will crash back down to below 10 thousand since it is still primed with previous quantitative easement money from the last time the federal reserve did the same thing.
it didn't work then for anyone but stock broker's and with artificially inflating stock portfolio's in investment portfolio's for awhile....hardly worth destroying the country over for anyone...even giddy stock brokers.
the giddy stock brokers will make a lot of money in the short run...but then have to pay it back with all of the rest of us because the federal reserve loaned us that money...they didn't just give it to us. yep, those people making money now off of qe3 will pay some of it back in taxes.
because of the size of these "gifts" to the lenders...taxes can't be paid back in just one lifetime. no, it will take several if not more lifetimes. the lifetimes of your kids and grandkids to pay back if ever. that's a lot of money...those stock broker's must not have any children or grandchildren. although i can't blame them for taking advantage of this manna from heaven today.
no, their great great grandchildren are going to be mad as hell at them for leaving them in so much debt 20 to 50 years from now. i hope they make enough to get really, really rich right now and then put a huge chunk of it away...because their future generations will be really, really poor and mad at them if they don't leave them anything but a lifetime of debt behind.
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