Can someone explain how the DOW is at 14,000 yet the Sky is falling | Page 2 | TigerDroppings.com
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lsuoilengr
Member since Aug 2008
1035 posts

re: Can someone explain how the DOW is at 14,000 yet the Sky is falling

Maybe the Fed printing 80 BILLION dollars a month has something to do with the market going up?

Like blowing a bubble up, like the internet bubble, then people realize its just paper and *pop*

An American Horror Story

just playing devil's advocate


lsuoilengr
Member since Aug 2008
1035 posts

re: Can someone explain how the DOW is at 14,000 yet the Sky is falling
Here’s a recap of some of the larger Fed moves during the Crisis:



Cutting interest rates from 5.25-0.25% (Sept ’07-today).
The Bear Stearns deal/ taking on $30 billion in junk mortgages (Mar ’08).
Opening various lending windows to investment banks (Mar ’08).
Hank Paulson spends $400 billion on Fannie/ Freddie (Sept ’08).
The Fed takes over insurance company AIG for $85 billion (Sept ’08).
The Fed doles out $25 billion for the automakers (Sept ’08)
The Fed kicks off the $700 billion TARP program (Oct ’08)
The Fed buys commercial paper from non-financial firms (Oct ’08)
The Fed offers $540 billion to backstop money market funds (Oct ’08)
The Fed agrees to back up to $280 billion of Citigroup’s liabilities (Oct ’08).
$40 billion more to AIG (Nov ’08)
The Fed backstops $140 billion of Bank of America’s liabilities (Jan ’09)
Obama’s $787 Billion Stimulus (Jan ’09)
QE 1 buys $1.25 trillion in Treasuries and mortgage debt (March ’09)
QE lite buys $200-300 billion of Treasuries and mortgage debt (Aug ’10)
QE 2 buys $600 billion in Treasuries (Nov ’10)
Operation Twist reshuffles $400 billion of the Fed’s portfolio (Oct ’11)
QE 3 buys $40 billion of Mortgage Backed Securities monthly (Sept ‘12)
QE 4 buys $45 billion worth of Treasuries monthly (Dec ’12)


All that cash had to go somewhere. Not to the regular Joe though.


southernelite
LSU Fan
New Orleans
Member since Sep 2009
43034 posts

re: Can someone explain how the DOW is at 14,000 yet the Sky is falling
solid couple of posts.


Blakely Bimbo
Alabama Fan
Member since Dec 2010
1180 posts

re: Can someone explain how the DOW is at 14,000 yet the Sky is falling
Another reason is that corp profits are good. Corp are mean and lean because if YOU are a salaried worker, you are working your arse off and doing the work of 1.5 -2 persons.


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