I have been saying for some time that the Fed is not going to do anything until January 2014, when there will be a change in the chairmanship. It goes back to that fundamental human trait of "wanting everyone to like me." I think Ben Bernanke wants to be seen as a benevolent Fed chairman when he retires in 2014. This is classic Washington politics, where the Fed chairman gives a very gracious speech saying that it's been a challenge and he enjoyed his time as chairman of the Fed, but he'll leave out the part where it's not his problem now. Whoever becomes the next Fed chairperson will face monumental challenges trying to extricate the country out of this spending binge and gluttony of cheap money. I suspect that had the Fed known they would be no further forward in 2014 when they took this quantitative easing course four years ago, they would have chosen another course of action to stimulate the economy. Here is a quick question for you, how many zeros are in $1 trillion? The answer is 12. 1,000,000 = million 1,000,000,000 = billion 1,000,000,000,000 = trillion A trillion dollars is an extraordinary amount of money and we have been spending pretty close to that every year for the last four years, and the economy is still struggling. Capitalism doesn't work when you artificially suppress real supply and demand thinking that will support or keep prices in check. Free markets work and have always worked when they are left alone. Yes, we have had boom and bust periods over the last 100 years of capitalism, but that is how it is supposed to work. Businesses come and go, it is all part of the business cycle. Businesses are allowed to fail and go out of business and there is always another company ready to pick up the good pieces and move forward. The market continues to be obsessed and addicted to the free money of QE. In my book, addictions don't usually turn out well, so be prepared! I will be examining the following stocks today in this report: Netflix (NASDAQ:NFLX) Pandora Media (NASDAQ:P) Tesla (NASDAQ:TSLA)
You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.
Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.