World Market Does'nt Require Quantitative Easing[QE]
Ben Bernanke Management is doing the same mistake which Allan Greenspan has done before the arrival of recession. Allan Greenspan's idea is to keep the interest rate low, pumping in more money to produce more and alas the money landed in Stock Market, Commodity Market and in the Mortgage Market. United States Dollar[$] had already been a margin currency, now it's planning to move up.
Markets too, did'nt appreciate the move. Dow Jones did'nt show any sign of life whereas commodity market dipped too. Federal Reserve Meeting July edition confirmed that USD$ 85 Billion quantitative easing is on till the end of the year. The biggest mistake is that to keep the interest rate down, as money starts moving not to add products but will land in Stock Market, Commodity Market or even Forex Market. But what about creating Macro-Demand in the market. Pumping or Moving money to the stock market will not do anything good, but producing something will be creating value. Never judge any countries performance by judging it's Stock Market, but judge it with the level of people above poverty line, level of unemployment, level of production and level of happiness. India is considered to be best when judging it's stock market, but added about 32 million people in the poverty line considered to be embarrassing. But United States checks through employment index every week, production index, level of crude oil available, etc, which creates or mars the market. But United States markets are planning to come back. Markets will be having a tumbling for a while, but it will crop up. Those not invested please invest when the market tumbles. Enhance money.
USD$40 Billion will be buying mortgage based securities and other USD$ 45 Billion will be buying treasuries. Federal Reserve Chairman made all this to keep the unemployment down or make it down. But does'nt have any modus operandi to do it.Gold, Silver, Platinum, Crude will be moving high, but not so far. Don't invest in this. This metals will be going to have a mammoth fall.
Markets too, did'nt appreciate the move. Dow Jones did'nt show any sign of life whereas commodity market dipped too. Federal Reserve Meeting July edition confirmed that USD$ 85 Billion quantitative easing is on till the end of the year. The biggest mistake is that to keep the interest rate down, as money starts moving not to add products but will land in Stock Market, Commodity Market or even Forex Market. But what about creating Macro-Demand in the market. Pumping or Moving money to the stock market will not do anything good, but producing something will be creating value. Never judge any countries performance by judging it's Stock Market, but judge it with the level of people above poverty line, level of unemployment, level of production and level of happiness. India is considered to be best when judging it's stock market, but added about 32 million people in the poverty line considered to be embarrassing. But United States checks through employment index every week, production index, level of crude oil available, etc, which creates or mars the market. But United States markets are planning to come back. Markets will be having a tumbling for a while, but it will crop up. Those not invested please invest when the market tumbles. Enhance money.
USD$40 Billion will be buying mortgage based securities and other USD$ 45 Billion will be buying treasuries. Federal Reserve Chairman made all this to keep the unemployment down or make it down. But does'nt have any modus operandi to do it.Gold, Silver, Platinum, Crude will be moving high, but not so far. Don't invest in this. This metals will be going to have a mammoth fall.
