What Would You Do?

So stop worrying about whether stocks are going to crash. The real danger is holding major assets in ‘risk-free’ fiat-based money.

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Disclosure: Short UPS Jan. 2017, $90 puts, Long BBBY shares, short BBBY Jan. 2017, $70 & $75 puts.

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Joe Economy 5 years ago Member's comment

The US govt tried QE a number of times in the past. In November 2008, the Fed announced a $600 billion quantitative easing program, and another $1.8 trillion four months later. Eventually the economy recovered but at what cost. Some of the many disadvantages of QE are:

1. It causes the dollar value to decrease

2. Leads to inflation raising prices of consumer goods hurting the people QE was supposed to help.

3. Diminished value of the dollar decreases the ability of the US govt to borrow money from other govts because the dollar buying power is hurt.

4. Can ultimately lead to a consumer war (perhaps this is where we are closest to heading right now after the Swiss abandoned its cap on the Swiss Franc that sent its value surging). Which country is next to head down the same road as Switzerland?