Why the FED keeps giving free money to Wall Street? Instead of stimulating job creati

Why the FED keeps giving free money to the banks and Wall Street? Instead of stimulating job creation they are pumping up a new buble - stock market one. That money simply makes some fat cats fatter.
I don't know of a country which got out of recession just by printing more and more money....
Trying to get around the fundamental economics is pretty much like trying to get around gravity.

This level of the stock market is not based on economic fundamentals, but on simple $$$ devaluation. Do not fool yourself the economy is not improving,..... Obama promissed honesty, I suspect they lie about, unemployment, GDP, and just about any economic indicator they can control.

 

This thread should probably be merged into http://forums.digitalpoint.com/showthread.php?t=622067

 

Can you show us exactly where banks are getting free money?

 

The level of confidence plays a big part of the bubble we've been in for a long time. I think it's their way of returning confidence to the money people. After all, it is these people who helped get you in the position you're in today.

Whilst I don't agree with the printing of money or propping up the bubble, something needs to be done to keep confidence levels high to keep up the pretense in their world.

I hate credit and everything about it but I can see the world would be way behind where it is now without it, so indeed it has to be good for us all, not the slavery angle SP sprukes. The last thing you, or anyone wants is to have it all fall down around us. If that's what it takes to restore what we had, and possibly better, then go for it. Money's worthless but what we do with it, is worth everything.

 

So they can make more slaves:

1. Print money >>> 2. Give it to banks >>> 3. Let the bank create slaves who will work hard to earn the masters more than they have lend.

 

[video=youtube;FNNFVjBVEtQ]http://www.youtube.com/watch?v=FNNFVjBVEtQ[/video]​

says it all ... about what's coming up and why they try so desperately to get wikileaks down.

 

This will explain why.

[video=youtube;wpmlHTeVG9A]http://www.youtube.com/watch?v=wpmlHTeVG9A[/video]

 

This is to cause hyperinflation.

 

Puhleeze... we're free men, not Muslims. Only Muslims belong to the "Religion of Submission."

Banks have to borrow money like everyone else. But don't let me interrupt you with facts, please go ahead believing whatever craziness keeps you occupied until your suicide vest is ready.

 

Anybody knows a print money with no back up success story? I mean not those who get it. How will the society benefit from all that printing?
They expect us to feel richer, because the stock market is going up. Guess what they are wrong on that. What % has money in the stock market, and how much?
It is not that much. So basically, it benefits the special interests groups. BUT IT IS ALSOW BASICALLY A TREASON FOR THE REST.

 

I know also that by printing money they are diluting that value of the $ and thus those countries around the world will pay for it.
Well don't expect them to be fools for long. Then there will come consequences way bigger than the FED ever expected.

 

Not to disagree on how bad things really are, you are wrong on your stock market participation estimate of "not that much". 48 percent of all US households now have investments in the stock market, and more than 58 percent of all stock is now owned by pension funds, mutual funds, and life insurance companies, which covers most of everyone else(anyone with life insurance, a pension fund, or a mutual fund. For the small percent that remain, many(most?) city, county, and state governments keep some portion of their taxpayer cash on hand in stocks. Orange County California actually had to declare bankruptcy when the county controller made some bad derivative plays. In other words, we are all married to the thing in one way or another, but insiders will always make more whether the business is stocks or government.

 

Printing money is just a tool for creating inflation. Governments like inflation for at least two reasons:

• It appears to prop up exports and slow down imports (this is actually untrue, but it looks true if you are only looking at the numbers)
• It reduces the real cost of debt. The U.S. still owes trillions of dollars, but since each dollar is worth less, the real debt is less.

 

The mandate for the FED to promote growth was added in 1977 by Jimmy Carter. The dual mandate to stimulate the economy and protect the value of the currency doesn't make sense. Anyway, Jimmy Carter ended up with 20%+ prime rate. Just imaging what is going to happen should the prime rate go to 20% again.

That's probably the reason the FED is injecting the funds into the market.

 

Watch some tv, read the newspaper, go on google.com

Its all there, saying that the government is pumping " up " the economy via injecting money into the banking system so that interest rates are low on new home owners.

 

But Many Live On Financial Edge .....

The proof is all around us.


70% of Americans Live Paycheck to Paycheck!
That is right 70%. That, my friends, is a pretty scary number.

When you live from paycheck to paycheck you are living a lie. You have spent your freedom. Until you get out of debt or even attempt to get out of debt you will not be free. There will be rifts in your family because of tension, lack of sleep, and denial of your situation. The average person worries more about money than anything else in their life. More that even their children and their personal relationship with their spouse, which is probably suffering because of the bills.

http://simplyfantasticbooks.com/2010/06/04/70-of-americans-live-paycheck-to-paycheck/
...............
Another Source:

More than six in 10 (61%) of US workers live paycheck-to-paycheck to make ends meet, according to a new study sponsored by CareerBuilder.com. ...........

http://www.marketingcharts.com/topi...f-us-workers-live-paycheck-to-paycheck-10452/


Pumping money in the Stock Market is Artaficially Creating False sense of Wealth. Analyze the Real Estate buble. .... Money was given to just about anyone, now money is given to anybody who owns stocks.

Well, I don't see Real Wealth Creation.

Guys, America had her Best Years WHEN MOST OF THE PRODUCTS WERE MADE IN US.

America should stop job the exporting practicies. What electronics for example is made in US? But every household is packed with electronics.

America needs jobs. That's it. Printing money is a bad medicine..... It may look good at the beginning, but watch for the end result.

 

Like I said, I wasn't posting to make it sound like things are so great in the states right now. I was just pointing out that the stock market effects everyone. When Tarp I & II came about, nobody liked it, and Bush lost a lot of what remained of his supporters. With the luxury of hind sight, they were probably completely necessary because the catastrophic failure of Wallstreet would have sunk us all. I think there were a lot of things that could have been done to reduce systemic risk springing from Wallstreet malfeasance, and from the looks of things, almost none of them got put in place.

To the rest of your complaints, I don't see a simple solution, but I do see a cultural lack of personal responsibility being one of the root causes of our problems. Just because we are bombarded with advertisements to smoke or eat fast food doesn't mean we need to comply and become the fat ass we know we can be. Just because we are marketed neat gadgets and services, all set up on payment plans made to suck up every last dollar of your disposal income, doesn't mean you need to buy them. Do you really need a new $500 smart phone? Really? Do you really need the $125/month HD cable tv package? Really? The new X-Box? The new monthly video game subscription? Do you really need the 5 series BMW with a $599/month 2 year lease, or would a 2003 Ford Mustang you could pay cash for get you by?

I could go on and on and on and on, but I don't feel a lot of pity for people with no self discipline or self control, even if they are my own countrymen. You tell me about people living paycheck to paycheck, and I think about how Americans are amongst the fattest people on the planet. To me, they are symptoms of the same problem.

As a footnote, I don't mean to downplay the fact our current governance is devastating the middle class with their fiscal irresponsibility and cronie capitalism. If they keep it up, we will have skinny Americans with no luxuries, saving every penny trying to get ahead and they will all still be living paycheck to paycheck. Like I said, its not a simple problem

 

Those no.s are what they are and are the same for each Administration and are publically accessible.

Why should the present Administration lie about the problems the previous Administration is responsible for while it drove the country into the ditch?

The Chamber of Commerce who just bought back the Republicans is who is responsible for American job creation overseas while being financed by their politicians to do it.

When done so appropriately, printing money: adds to liquidity, mitigates debt to foreign country's and among the other qualities it dilutes the monetary values of organizations such as the Chamber of Commerce to the advantage of ordinary working people as the supply reaches a larger no. of people. The Fed. under Bernankie who is bound to not allow history to repeat itself is fully aware of and capable of managing inflation that the Camber of Commerce would more than love to see run rampant.

 

Do you realize the consequences of a lost trust in the dollar? Do you realize that one day contries around the world may decide to drop the $ since US can steal their money just by keep printing it here? If the $ is a world where the "world" can decide how much $ to print than it is a fair printing. But, when the $ plays the role of a world currency, but ONLY ONE COUNTRY CAN PRINT IT AS IT WISHES, than from a moral point of view it is unfair.

Having a good name in any business is the key for staying in business. Once you lose it, it is hard to repair the damage.

 

If any other country tried to price anything such as crude oil in any other curreny than USD then they'd spark world war 3. There's trillions of Euros, Yen and Pounds being lost because all these countries have to buy their oil in USD if the United Arab Emirates or Saudi Arabia wanted to sell Oil to Europe in Euros then world has just signed it's own dealth wish. Trust me there's lots of countris that would be more than happy to pop off the US and stop their control over price multiplication. So as soon as a country says we are not using USD any more because it's worth jack shit, that'll be the start of the end game.