Fed Chair Yellen says stock market prices 'quite high'

Yahoo Finance ^ | 6 May 15 | Martin Crutsinger

[raybbr]

They will jump in to buy stocks en masse once the drop reaches 10-15%.

Really? Is the value on stocks today based on actual value or the Fed's infusion of money? If the Fed stopping propping up the value what would happen?

[b4its2late]

Agreed. I don’t think she knows what she is doing.

[RayChuang88]

Look, too many investors ended up kicking themselves when they saw one Joseph P. Kennedy buy a huge amount of stocks and depressed Manhattan real estate at the height of the early part of the Great Depression and by the late 1930's, selling them off made Kennedy family fabulously rich. It's not a coincidence the family built those houses at Hyannis Port, MA in the 1930's.

As such, that's why since the 1930's, you see a lot of bargain hunters out there. I mean, look at how many investors made huge profits from the recent March 2009 stock market bottom.

[Forty-Niner]

Nothing but CYA

[gattaca]

Keep an eye on the EU.

[NautiNurse]

You are quoting the new economy ratios. I was interested in the broad economy ratios and old standbys—Exxon, Coca Cola, GE, GM, etc.

I used my invisible font reading lens and my mind reading telepathy module while re-reviewing your earlier post. Neither tool identified those details until you subsequently added them in a later post. Hopefully, you can learn how to use some of the myriad internet search engines available to find what you seek. Good luck.

[SkyPilot]

I will, thanks.

[SkyPilot]

If the Ded had not pumped all the imaginary money, the value of stocks would be about 50% lower.

[SkyPilot]

Interest on our current debt consumes a large slice of our FY budgets, but if interests rates were to increase just a few percentage points it would dwarf part of our disrectionary spending. In a collapse, the “automatic” spending on entitlements would shut down, perhaps until there was a global “reset”, which seems the way we are headed.

[SkyPilot]

I think 50% would be the best case scenario. You have to ask yourself, of a couple of tech stocks like Google and Apple where has there been major growth in the economy since 2008? <\i>

Bingo. You get it.

[CurlyDave]

Maybe Yellen will restart Nixon’s “Whip Inflation Now” program. Except she will jawbone hedge funds...

That was Ford's program.

It still felt like a high school stunt.