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Fed Bond Buying - $85bn per month

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mullet_fish
Regular Contributor
On a scale of 1(bad)-10(good) how do you guys rate your REAL understanding of what is going on here? - be honest! It feels as if everyone is "winging" it with their knowledge of this difficult subject - especially the analysts/market commentators. To get the ball rolling I give myself a 3!
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8 REPLIES 8
Preston
Super Contributor
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SimonPB
Valued Contributor
10,what they doing is easy .. it the out come nobody knows ..
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Not applicable
I agree with Simon. Its relatively easy to grasp what it is they are doing. They Create money from nothing. They might as well allow everyone to photocopy dollar bills and spend it. But to understand how it will end is a different story. I can only see massive inflation and even perhaps global hyperinflation if it goes on like this and perhaps even increase in the future due to their low tolerance of higher interest rates. But nothing we can do about it so lets just ride the wave until one day it comes crashing down. Who knows it might only be 10 years from now.
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Not applicable
I agree with Simon. Its relatively easy to grasp what it is they are doing. They Create money from nothing. They might as well allow everyone to photocopy dollar bills and spend it. But to understand how it will end is a different story. I can only see massive inflation and even perhaps global hyperinflation if it goes on like this and perhaps even increase in the future due to their low tolerance of higher interest rates. But nothing we can do about it so lets just ride the wave until one day it comes crashing down. Who knows it might only be 10 years from now.
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koos2
Super Contributor
But nothing we can do about it... Ha, Ha!
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koos2
Super Contributor
Maybe the q should be : should you do anything about it, ie the fight-or-flight-or-freeze response. And, can you handle the unintended consequences of what you did, plan to do? ( Can you sleep at night? ;that part is easy, just don't drink coffee after 18:00!)
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geordie1
Super Contributor
6.it seems we are in unchartered territory as know one knows the future(did they ever)>I admit I have some fear and have moved a bit more into cash and sold some shares that I have lost confidence in.bought a few conservative property shares and dived into some high risk for excitement.gonna be an interesting journey.
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Rams
Super Contributor
1(one).... Simply becos I have not even attempted to try to understand it....all I know is that there is money to be made when the issue comes up......
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