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| I believe that I have posted this before, but I think it is worth repeating. When I first thought about this, I started laughing. Think about what the Fed did this way, and everything gets real clear.
The bankers are sitting around a table. They are depressed. They talk about all the bad loans they have on their books, and they agree that with the downturn, they are broke. Then one of the bankers brightens up and says that he has a solution to their problems. Why don't they just print money and give it to themselves?
Now think about how different the 80s would have turned out if we farmers had the ability to just print money. And then think about the likely scenario that would have followed and where that would have led. IMHO, you *must* put in the normal healthy cycle lows in any market, or that market gets more and more dangerous. Following a cycle high, you must have the reactionary cycle low to cleanse the market. There is no alternative. | |
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The 4.5 trillion dollar balance sheet. Continued QE
