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radha08
03-09-12, 12:29
is it that more money is pumped into mkt then cause share market to up...people make money then buy property can anyone enlighten me..:cool:
carbuncle
03-09-12, 12:46
it means more liquidity and paper money in the market especially flowing to Asia especially to Singapore. where do you think bags of money can be placed with high safety net and yield?
radha08
03-09-12, 12:49
it means more liquidity and paper money in the market especially flowing to Asia especially to Singapore. where do you think bags of money can be placed with high safety net and yield?

hmm...mr b is going to be so dissapointed..if qe3 happens..:rolleyes:
focus
03-09-12, 12:53
is it that more money is pumped into mkt then cause share market to up...people make money then buy property can anyone enlighten me..:cool:

Alot of insitution money cannot just buy your typical property like that.
Most liquid form for them is to move into bonds and equities and commodities and all those financial instruments on the market.
Kanarazu
03-09-12, 12:54
it means more liquidity and paper money in the market especially flowing to Asia especially to Singapore. where do you think bags of money can be placed with high safety net and yield?

If US prints more $ it becomes the weaker currency. Money tends to flow into the stronger currency for safety reasons and hence SGD supply and liquidity will increase suddenly creating an inflationary effect, correct?
carbuncle
03-09-12, 13:07
mine was a guess. I m no economist...
samuelk
03-09-12, 13:37
am not sure, but seems like the good times are coming to a correction to a workplace near you:scared-1:
Localite
03-09-12, 14:43
IMHO

Fed prints more money, then value of money drops.

All hard assets will appreciate vs fiat money.

This is what has happened in the last three years, ppty prices, stock prices, commodity prices are bull run. In reality what happened is that money value has crashed, so everything we measure the value using money has gone up.

Philosophically this is what causes the rich - poor gap to widen further.

The rich people own assets, the poor people draw salary (fiat money).
phantom_opera
03-09-12, 14:58
10y SGS bond yield is 1.38% as of yesterday

So it is already inflated, everything from garmen bond to high yield stocks, REITs, corp bonds, properties

QE3 is almost 75% factored into market ... be very careful
eng81157
03-09-12, 15:41
i am more concerned how the central banks are going to mop up all the excess liquidity after all the QEs, euro-bonds purchase, etc etc. if they can't unravel the mess, can be sure that the days of inflation are here to stay for a VERY long time.
focus
03-09-12, 17:33
i am more concerned how the central banks are going to mop up all the excess liquidity after all the QEs, euro-bonds purchase, etc etc. if they can't unravel the mess, can be sure that the days of inflation are here to stay for a VERY long time.

crash. A crash will suddenly vapourized all liquidity. It just disappeared into thin air.

During downturn, assuming sellers have to sell somehow ,
You bought $1mil on $800k loan.
You have to sell at $900k and incurred a loss of $100k(excl. costs).
The buyer bought at $900k. $100k disappeared into thin air.. the $100k is yours, not the bank. but $100k less.
The buyer loan $720k , $80k less from bank. Another $80k disappeared into thin air.
So 1 transaction , you will have $180k disappeared into thin air.