Replies to post #164429 on Zeev's Turnips Patch-No Politics (ZEEV)

[peace_2_all]

Zeev, with all due respect, I think he means for fed to just stop pumping liquidity into this ponzi scheme when the market can efficiently take care of its own business if left alone. I sincerely believe the fed's actions are giving people a false sense of security into buying junk stocks that benefit for whatever reason from the liquidity pump of greenspan.

[lee kramer]

Zeev: I must agree with you. I had a lot of respect for Mr. Kaufman 20-25 years ago. No longer. The fellow seems to have gone round-the-bend. Perhaps because he's now in the private sector.

[Joe Stocks]

>> If you take that stand, than it is also the feds job to "control undervaluation" of equities (assets)<<<

Ahhh, Zeev.....they do. What do you think they are doing when they lower the discount rate. They most certainly recognize that the economy has slowed, earnings have dropped, and the country needs a little boost. Stock prices reflect earnings. Anyway you want to look at the market, it is overvalued in historical terms. Yet, we see Fed governors out almost everyday cheerleading. The Fed should not be trying to use stock values as a tool to pump up a stronger economy. We all know what happens in the end - another bursting bubble.
The Fed influences valutions on the dollar and bonds, why is it hard to believe that their actions are not designed to influence the valuation of equities also?