/biz/ - Business & Finance

>>20118208
>our monetary policy will be dictated by inflation
They're a central reserve bank, their monetary policy is supposed to be dictated by the inflation and deflation by default. Its a statement that says nothing. The fact that they're buying up individual corporate bonds right now means that despite 0% interest rates to banks, the banks aren't making loans to the companies trying to die. Even when they hand out money for free, there's not enough liquidity to keep the gears greased without them just straight up adding shit debt to their books so companies can take more loans.

If the Fed is going to commit to being a backstop for corporate America, if they're also going to keep doing QE round infinity (instead of tapering liquidity like they said last month...), and if they really aren't going to do YCC, then things will crash in real terms. As soon as real bond yields get over 0.7%, the real estate and stock bubbles implode, and so do pensions, IRAs, 401ks, etc...

If they do YCC (maybe in the fall) then things soar in nominal terms but the dollar becomes increasingly worthless as money flows into an undeniably clownish market.

>>19919617

>>19916379

There is not enough liquidity to prop up this market, full stop. It is the most inflated bubble in all history. $7 trillion was needed to get us back where we are now, and the current $1.5 trillion per annum is not enough to maintain the gain. Only YCC, along with inevitable hyperinflation and a crash in the bond-market, will prop up stocks now. In other words, your Amazon shares will be going up 1000% percent soon, but they will only buy you a few loaves of bread.

Don't worry. Stocks will go up again eventually. Only, a share of Amazon will then be worth five loaves of bread.

Stocks are clearly going to the moon.

>>19915026