State of the Union

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StahlBro

Trad climber

San Diego, CA

Jan 26, 2012 - 12:23pm PT

It is as real as it gets, especially since it does not include any more triple leveraged bad loans.

CrackAddict

Trad climber

Canoga Park, CA

Jan 26, 2012 - 01:58pm PT

It is as real as it gets, especially since it does not include any more triple leveraged bad loans.

The bad loans are still there, the large banks are sitting on hundreds of billions of dollars worth, they are just hoping to write them down slowly enough to avoid total default. Obama has done absolutely nothing structurally to fix the economy, just printed money.

When interest rates are 0%, people are forced to seek higher yield, and Trillions of dollars are printed from thin air, money is going to find its way into the stock market.

CrackAddict

Trad climber

Canoga Park, CA

Jan 26, 2012 - 02:01pm PT

It is funny to listen to Obama's State of the Union and contrast it with what the Fed is saying the last couple days. The Fed is painting a MUCH bleaker picture of the next few years, vowing to keep rates pegged at zero until 2014 and even get the printing presses rolling as needed.

http://seekingalpha.com/article/322300-free-money-thursday-quoth-bernanke-forever-more

Quoth Bernanke, 'Forever More'

But where's my trillion dollars?

Federal Reserve officials said they expect to keep short-term interest rates near zero for almost three more years and signaled they could restart a controversial bond-buying program in yet another campaign to rev up the disappointing economic recovery.

The Central Bank's pronouncements came after a two-day policy meeting from which officials emerged still frustrated at the slow pace of growth and a bit more confident that inflation is settling down after climbing last year. The combination of persistent slow growth and low inflation, Fed Chairman Ben Bernanke signaled in a news conference after the meeting, could give the Fed leeway to take more action to support the economy, though he didn't commit to it.

A bond-buying program-also meant to push down long-term interest rates-could be the next step. Mr. Bernanke said there would be a "very strong case" for even more action by the Fed "if the recovery continues to be modest and progress on unemployment very slow and inflation appears to be likely to be below target for a number of years out."

dmons

climber

Jan 26, 2012 - 02:04pm PT

during the vietnam war,
the US spent about a million dollars per "enemy" killed

martin luther king got it right,

"every bomb we drop, lands in the US"