Very possible and very accurate. Keep pumping away you jerks!

They tried stop in late 2018 (October I think conveniently enough) Dow dipped 400 points just on the threat of ending QE.

"The correlation coefficient between central bank quantitative easing and the price of stock indexes is nearly 1..."

I wrote something about QE tonight for here and SubStack check it out if you like. Here's part 2:

The water is running out, despite the faucets all on full blast. Additional money supply increases are no longer pushing the phony nominal stock prices upward and commodity price increases are creating a tempest of downward pressure on the real economy. Why won't it work no more?!?

Its because the smoothbrainz don't understand the basic forces of supply and demand. Traditionally the Fed only could tickle supply i.e. adding to M1 thru adjusting fed funds/interest rates. After 2008 and QE, the Fed began stimulus for demand side, i.e. asset buying programs. This was unprecedented and economic minds with sound reasoning warned of the hazard it posed. It set a precedent for a nanny state where the Fed would "save" anyone from their own spurious and risk taking behaviors for one.

Beyond that it fundamentally changed the way financial institutions viewed and cooperated with the Fed in the marketplace.

The Fed was on the buyer side now, supposedly just long enough to allow institutions to recoup from the massively depreciated assets that were fouling up their books so bad they were fundamentally insolvent.

QE fundamentally changed the market and the banks were allowed to flee from their own mess. Not only that, but further creations of "mess" would NOT be taken by the banks to their balance sheets - not when the Fed still exists in the market to add that nasty shit to its balance sheet.

The Fed never adopted a proper exit strategy for QE and now THERE NEVER WILL BE ONE. The banks have gotten too comfortable with having someone else dealing in those debt classes and adding them to a balance sheet that doesn't mean shit to them. This allowed them to return to proper quarterly targets without a loss and the credit markets to unfreeze. But the problem is the balance sheet belongs to us the American taxpayer and WE are going to pay for it, and so as OUR finances begin to drain from the inflation endless fucking QE inevitably causes.

As this happens and we all go broke, banks begin to lose their capitalization and credit starts to get frost on it again. Its coming around the globe to fuck them from the other side, see? EVEN WORSE NOW THE FED HAS TO RAISE RATES TO PREVENT MAIN STREET FROM TOTALLY EXPLODING, SO WE CANT KEEP CAPITALIZED BY BORROWING AT ZERO ANYMORE! What do we do? Fuck, change the capitalization standards? Already did! Do it more!

The real economy is a dream deferred and now they have to wake up to it. They've been manipulating the nominal numbers a long time now and it just is getting too big to control. Bubbles formed and ready to pop in foreign real estate and student loans. Trillions spent just blowing on a bonfire like it's a boo-boo. Time's almost up!

Very possible and very accurate. Keep pumping away you jerks!

They tried stop in late 2018 (October I think conveniently enough) Dow dipped 400 points just on the threat of ending QE.

"The correlation coefficient between central bank quantitative easing and the price of stock indexes is nearly 1..."

I wrote something about QE tonight for here and SubStack check it out if you like.

Here's part 2:

The water is running out, despite the faucets all on full blast. Additional money supply increases are no longer pushing the phony nominal stock prices upward and commodity price increases are creating a tempest of downward pressure on the real economy. Why won't it work no more?!?

Its because the smoothbrainz don't understand the basic forces of supply and demand. Traditionally the Fed only could tickle supply i.e. adding to M1 thru adjusting fed funds/interest rates. After 2008 and QE, the Fed began stimulus for demand side, i.e. asset buying programs. This was unprecedented and economic minds with sound reasoning warned of the hazard it posed. It set a precedent for a nanny state where the Fed would "save" anyone from their own spurious and risk taking behaviors for one.

Beyond that it fundamentally changed the way financial institutions viewed and cooperated with the Fed in the marketplace.

The Fed was on the buyer side now, supposedly just long enough to allow institutions to recoup from the massively depreciated assets that were fouling up their books so bad they were fundamentally insolvent.

QE fundamentally changed the market and the banks were allowed to flee from their own mess. Not only that, but further creations of "mess" would NOT be taken by the banks to their balance sheets - not when the Fed still exists in the market to add that nasty shit to its balance sheet.

The Fed never adopted a proper exit strategy for QE and now THERE NEVER WILL BE ONE. The banks have gotten too comfortable with having someone else dealing in those debt classes and adding them to a balance sheet that doesn't mean shit to them. This allowed them to return to proper quarterly targets without a loss and the credit markets to unfreeze. But the problem is the balance sheet belongs to us the American taxpayer and WE are going to pay for it, and so as OUR finances begin to drain from the inflation endless fucking QE inevitably causes.

As this happens and we all go broke, banks begin to lose their capitalization and credit starts to get frost on it again. Its coming around the globe to fuck them from the other side, see? EVEN WORSE NOW THE FED HAS TO RAISE RATES TO PREVENT MAIN STREET FROM TOTALLY EXPLODING, SO WE CANT KEEP CAPITALIZED BY BORROWING AT ZERO ANYMORE! What do we do? Fuck, change the capitalization standards? Already did! Do it more!

The real economy is a dream deferred and now they have to wake up to it. They've been manipulating the nominal numbers a long time now and it just is getting too big to control. Bubbles formed and ready to pop in foreign real estate and student loans. Trillions spent just blowing on a bonfire like it's a boo-boo. Time's almost up!