

Why Is the Shiller CAPE So High? - prostoalex
http://www.philosophicaleconomics.com/2014/08/capehigh/

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waps
Because central Banks have been buying up securities to avoid bankrupting the
government during the 4st 4 years of their party's president. Then they had to
extend this to avoid hitting 15% unemployment by hitting the next recession
when unemployment was already at 9-10%.

Then those %$##@$$% "job-creators" only went halfway : they hired people, but
not enough and only temps. So now the Fed is buying securities, pushing up
Schiller's P/E, to create employment pressure before hiking rates back up and
presumably create the mother of all crashes by selling 2+ trillion in
securities on the open market.

Now is the quiet before the storm. Best guesses seem to be dollar will
appreciate for half a year or so, stock market stalling or at least slowing
down, then stock market will crash, then another 3-4 months of dollar
appreciation, then the Fed will crash the dollar again.

Interesting times ahead.

