EE_
16th November 2014, 03:27 AM
I was article surfing and noticed someone in the comment section.
*see comments and click on his profile to see his other posts and how he speaks to others outside of gsus.
Why Stocks Are Soaring … Even though the Fed Stopped Quantitative Easing
Posted on November 15, 2014 by WashingtonsBlog
The Answers Might Surprise You
Why are stocks still soaring, even though the Fed stopped QE?
Initially, QE arguably hasn’t totally stopped been stopped. And – of course – Japan’s massive QE is helping the Dow and S&P as well.
Additionally, several central banks are directly buying stocks. They include the central banks of Switzerland, Japan, Israel, the Czech Republic, and a total of 23 percent of all nations worldwide. (And it has long been rumored that the Fed buys stocks through proxies.)
Companies have also been buying back their own shares in record numbers.
Paul Buchheit notes:
In 1981, major corporations were spending less than 3 percent of their combined net income on buybacks, but in recent years they’ve been spending up to 95 percent of their profits on buybacks and dividends.
Business Insider points out:
Ever since the financial crisis, S&P 500 companies have spent about $2 trillion buying back shares of their own stock.
***
Goldman Sachs’ David Kostin believes a temporary pullback may explain why the S&P 500 has tumbled from its all-time high of 2,019 on Sept. 19.
“Most companies are precluded from engaging in open-market stock repurchases during the five weeks before releasing earnings,” Kostin notes. “For many firms, the beginning of the blackout period coincided with the S&P 500 peak on September 18. So the sell-off occurred during a time when the single largest source of equity demand was absent.
In other words, when companies stop buying so much of their own stock, the stock market goes down.
Business Insider continues:
“We expect companies will actively repurchase shares in November and December,” he writes. “Since 2007, an average of 25% of annual buybacks has occurred during the last two months of the year.”
Kostin believes the comeback in buybacks will drive the S&P to 2,050 by year-end.
Why November and December?
Yves Smith explains:
Notice how the bulk of buybacks are concentrated in the fourth quarter, with the obvious intent of goosing prices at year end so as to lead to higher executive pay for “increasing shareholder value”? [Yup ... it's all about bigger bonuses.] In fact, these companies are being gradually liquidated. Issuing debt, which public companies have done in copious volumes since the crash, and using it to buy shares is dissipating corporate assets.
In addition, the vast majority of stock trades are done by high frequency trading computer programs. It’s childs play for big players to manipulate the price of stocks (and every other market).
The Fed has admitted that one of its main policy objectives is to boost stock prices. Many well-known financial analysts – such as Jeremy Grantham, Charles Biderman and Scott Nations – say that the feds manipulate the stock market. And see this, this and this.
And the government facilitates fraudulent acts and fraudulent accounting by big corporations, and always settles prosecutions for pennies on the dollar (a form of stealth bailout) … which allows the companies to avoid losses and to falsely inflate their valuations.
http://www.washingtonsblog.com/2014/11/central-banks-buying-stocks-2.html
Comments:
Hypertiger • 5 hours ago
The central bank is a middle man between the US Treasury and the commercial banks.
The treasury issues bonds as directed by congress and uses them as collateral for the creation of credit by the Federal reserve or loan.
Bond is shot for bondage...The constitution written by a group of men calling themselves we the people in Manhattan on wall street...gave a thing they called congress to enslave the population of the USA or putting them into bondage by issuing bonds from the US Treasury.
Alexander Hamilton was a banker and city of London asset who helped set the entire financial system up.
He is buried on wall street...the first US congress was on wall street...and the fist thing they did was count the votes that elected George Washington, a British east India company asset, the first president of the USA on march 4th 1789
Then the Federal reserve sells the bonds to the primary dealers...the top money center banks...which inflate their balance sheets with loans of credit to all of you...for mortgages or death pledges...and the profit or yield they extract from all of you is used to buy the bonds from the federal reserve...
zeroing their balance sheet...since the credit they create out of thin air to loan to the US government through the US Treasury that was set up by alexander Hamilton...the city of London asset and new your banker...returns back into thin air when the primary dealers buy the bonds.
The purpose of the QE was to keep the banking system in the USA and world from imploding to oblivion...since in 2008...the population of the USA became negatively yielding.
Bretton woods in 1944 set the USA up as the supply of inflation and the rest of the world the demand for it.
after 64 years of compounding or exponential growth...the USA reached maximum potential.
the demand of the population for inflation from the population of the USA became greater than the inflation supplied to the population of the USA...cutting off the supply of yield to the banking system...and the USA along with the rest of the world began to implode to oblivion...the QE plugged this hole.
basically where the US population was supplying a real zero...the FED covered it with a fake one...along with the late 2008 G20 where the puppet nationalist leaders of the world were told by their globalist masters to implement the greatest global economic intervention in history...So that the globalist masters could catch you all falling to you doom with their invisible hand on March 6th 2009...to engineer the bounce up to here.
To sustain you all so you can fill the internet with your worthless speculations as to what is going on.
But the global system began topping into late 2013 and began heading down going into 2014.
All the revolutions and economic implosions outside of the USA are due to the collapsing US dollar inflation since 2008...
Since the USA is at the top of the Bretton woods pyramid...it suffers the least...the bottom suffers the most.
*see comments and click on his profile to see his other posts and how he speaks to others outside of gsus.
Why Stocks Are Soaring … Even though the Fed Stopped Quantitative Easing
Posted on November 15, 2014 by WashingtonsBlog
The Answers Might Surprise You
Why are stocks still soaring, even though the Fed stopped QE?
Initially, QE arguably hasn’t totally stopped been stopped. And – of course – Japan’s massive QE is helping the Dow and S&P as well.
Additionally, several central banks are directly buying stocks. They include the central banks of Switzerland, Japan, Israel, the Czech Republic, and a total of 23 percent of all nations worldwide. (And it has long been rumored that the Fed buys stocks through proxies.)
Companies have also been buying back their own shares in record numbers.
Paul Buchheit notes:
In 1981, major corporations were spending less than 3 percent of their combined net income on buybacks, but in recent years they’ve been spending up to 95 percent of their profits on buybacks and dividends.
Business Insider points out:
Ever since the financial crisis, S&P 500 companies have spent about $2 trillion buying back shares of their own stock.
***
Goldman Sachs’ David Kostin believes a temporary pullback may explain why the S&P 500 has tumbled from its all-time high of 2,019 on Sept. 19.
“Most companies are precluded from engaging in open-market stock repurchases during the five weeks before releasing earnings,” Kostin notes. “For many firms, the beginning of the blackout period coincided with the S&P 500 peak on September 18. So the sell-off occurred during a time when the single largest source of equity demand was absent.
In other words, when companies stop buying so much of their own stock, the stock market goes down.
Business Insider continues:
“We expect companies will actively repurchase shares in November and December,” he writes. “Since 2007, an average of 25% of annual buybacks has occurred during the last two months of the year.”
Kostin believes the comeback in buybacks will drive the S&P to 2,050 by year-end.
Why November and December?
Yves Smith explains:
Notice how the bulk of buybacks are concentrated in the fourth quarter, with the obvious intent of goosing prices at year end so as to lead to higher executive pay for “increasing shareholder value”? [Yup ... it's all about bigger bonuses.] In fact, these companies are being gradually liquidated. Issuing debt, which public companies have done in copious volumes since the crash, and using it to buy shares is dissipating corporate assets.
In addition, the vast majority of stock trades are done by high frequency trading computer programs. It’s childs play for big players to manipulate the price of stocks (and every other market).
The Fed has admitted that one of its main policy objectives is to boost stock prices. Many well-known financial analysts – such as Jeremy Grantham, Charles Biderman and Scott Nations – say that the feds manipulate the stock market. And see this, this and this.
And the government facilitates fraudulent acts and fraudulent accounting by big corporations, and always settles prosecutions for pennies on the dollar (a form of stealth bailout) … which allows the companies to avoid losses and to falsely inflate their valuations.
http://www.washingtonsblog.com/2014/11/central-banks-buying-stocks-2.html
Comments:
Hypertiger • 5 hours ago
The central bank is a middle man between the US Treasury and the commercial banks.
The treasury issues bonds as directed by congress and uses them as collateral for the creation of credit by the Federal reserve or loan.
Bond is shot for bondage...The constitution written by a group of men calling themselves we the people in Manhattan on wall street...gave a thing they called congress to enslave the population of the USA or putting them into bondage by issuing bonds from the US Treasury.
Alexander Hamilton was a banker and city of London asset who helped set the entire financial system up.
He is buried on wall street...the first US congress was on wall street...and the fist thing they did was count the votes that elected George Washington, a British east India company asset, the first president of the USA on march 4th 1789
Then the Federal reserve sells the bonds to the primary dealers...the top money center banks...which inflate their balance sheets with loans of credit to all of you...for mortgages or death pledges...and the profit or yield they extract from all of you is used to buy the bonds from the federal reserve...
zeroing their balance sheet...since the credit they create out of thin air to loan to the US government through the US Treasury that was set up by alexander Hamilton...the city of London asset and new your banker...returns back into thin air when the primary dealers buy the bonds.
The purpose of the QE was to keep the banking system in the USA and world from imploding to oblivion...since in 2008...the population of the USA became negatively yielding.
Bretton woods in 1944 set the USA up as the supply of inflation and the rest of the world the demand for it.
after 64 years of compounding or exponential growth...the USA reached maximum potential.
the demand of the population for inflation from the population of the USA became greater than the inflation supplied to the population of the USA...cutting off the supply of yield to the banking system...and the USA along with the rest of the world began to implode to oblivion...the QE plugged this hole.
basically where the US population was supplying a real zero...the FED covered it with a fake one...along with the late 2008 G20 where the puppet nationalist leaders of the world were told by their globalist masters to implement the greatest global economic intervention in history...So that the globalist masters could catch you all falling to you doom with their invisible hand on March 6th 2009...to engineer the bounce up to here.
To sustain you all so you can fill the internet with your worthless speculations as to what is going on.
But the global system began topping into late 2013 and began heading down going into 2014.
All the revolutions and economic implosions outside of the USA are due to the collapsing US dollar inflation since 2008...
Since the USA is at the top of the Bretton woods pyramid...it suffers the least...the bottom suffers the most.