Originally Posted by
pizious
In my opinion, the Fed is propping up the stock market by printing money and keeping interest rates low. All that extra cash will eventually always find it's way to the stock market. Once interest rates rise (When? who knows), you may see the the stock market take another dump and
metal prices soar again. I'm not an expert at these sort of things, but I get the feeling the stock market gonna get a big hurt in the near future.
The fed is propping up the banks, which in turn get free money and buy up stock and commodities with it. Without that free money the whole banking system will pretty much implode, there are too many bad loans out there being counted as good. Look at what happened to Cypris, large banking sector making tons of money with low debt in the country, well they had invested in Greek bonds so when those were partially forgiven the banking sector implodes and so will the whole country long term (they now have debt they cannot repay because their only income is now gone with banking dead and tourism down). The US banks and the world in general is like that now, profit from loans and bets that will not turn out good long term and everybody fighting to not have to pull down the curtain taking the world economy down with it.
Interest rates will stay low because they have to. Go to the bank and see what they charge you for a loan (not free and they are very picky who they lend to now) then go see what interest they pay on your money (zip nada nothing). The US #1 world economy is realy in the ****ter except for a few sector being propped up with free money, we are expecting the Chinese #2 economy to prop up sales and they are cooling (and thats with major fudging to show a positive increase in GDP even with factories shutting down). #3 would be Europe and they are circling the drain so they won't be buying much, who is left to sell to? Who has extra cash to buy stuff? How will the debt get repaid?
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