So The Gravy Train Is Coming To An End For Wall Street & The Banksters And They Are......

[global1]

taking it out on us. Can't make the money the easy way and so they tank the whole market.

[DJ13]

1. Like children when the sugar high wears off

[Autumn]

2. It is?

[leftyohiolib]

3. how is the gravy train ending for wall street? not snark idk what u mean

[Igel]

4. QE.

The Fed chairman said that the Fed would probably stop buying up what--$85 billion--in bonds come mid-2014.

That's the $85 billion in demand for government bonds and bad debt that's kept the interest rates so low, the payments on new national debt (lic. deficit) miniscule, and bad debt from being a burden on private firms.

That's done a few things. It's avoided deflation. It's kept T-bill rates very, very low, making the deficits for the last few years almost free money. That's kept private lending rates (for bank loans and mortgages) low. Which, in turn, has allowed increase in spending on houses to be reflected in house prices and not in mortgage interest payments.

It's also meant that the Fed has bought up what may be bad debt. If they sell it, it would be, well, weird. On the other hand, they've continued to buy it up so bad debt would again begin to accumulate and would result in a classical recession sooner rather than later.

[leftyohiolib]

6. thanks nt

[quaker bill]

5. nah

equity prices tonight would have been considered a record high only two months or so back.....

Precious metals is where the action is at. Gold bugs and Glenbeckistanis are losing money by the truckload. Gold is at 60% of peak value and heading to 50% fast. Silver is at 50% of peak value, and heading to 40% or even less a bit more quickly. Most folks who bought during the bubble up are way underwater now.