Monday, August 4, 2014
The #1 Reason Why the Fed Taper Will CRASH the Stock Market
The Fed has been made their QE program wind down with a taper which hasn't effected the markets quite yet. However, the market hasn't realized that interest rates are kept low by means of Open Market Operations. This requires the Fed to go into the market, buy up the garbage debt, which forces the interest rates down. Now with this taper, it will send interest rates sky high.
The stock market will crash and so will the economy. Brace for impact.
Reserve has made it abundantly clear that it is ending its quantitative easing (QE) bond and mortgage buying program (the Fed has already slashed it from $85 billion a month to $25 billion/month)
Mortgage rates have been falling for 30 years in a virtually straight line.
"a housing bubble in Canada that could lead to a drop in property value of nearly 40% in some markets, according to a report by the Canadian Centre for Policy Alternatives."
People are only able to afford rising home prices, because of historically low interest rates. Prices are rising because interest rates are historically low.
KRUEGER SAYS WORKERS NEED TO 'RATCHET DOWN WAGE EXPECTATIONS'
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