bubble bubble boom boom

[Vanraw]

I am 100%convinced that the next bubble burst will be when the fed finally pulls it's propping up of the market. This.subject should probably be in the political forum.

When the fed announced it would start easing it's QE policy the market drops and pukes with the Dow dropping 650 points. Then they announce they will.continue and.the market pops over 800 to new records.

This whole thing makes me put my conservative hat and ask the government to get the hell out of private business and enterprise. From corporate welfare to quantitative easing, the entire world economy seems to be based on American tax dollars.

This can not end well.......

[Breand]

Well I think they are going to ease out of it slowly instead of pulling the plug, but otherwise, I agree. The Fed has no exit game here, but hey they wanted to play the prop up the economy game and now they are stuck with a bunch of corporations expecting handouts.

Just Bernanke opening his yap a month ago also made mortgage rates shoot up a full % point which could seriously stall the housing recovery.

[Vanraw]

I would love to see some real numbers on how much the economy (US and world) is based on American federal crutches. Military, agriculture, corporate welfare, and WE. I think e would all be shocked.

The real problem is that any sitting politician is motivated to continue and even expand the handouts.the best way for a politician to get fired is to do any thing that will impact the corporate welfare system.

[Grieve]

Maybe, maybe not. There is a HUGE amount of money in bonds that is starting to run for the exits. Where is going to go? Stocks. That may result in a new stock bubble, but I think that is years away. The market could go hugely higher in the meantime.

I'm staying long stocks and short bonds (TBT).