Stock Broker

Written by Online Trading

Seeking Alpha Article on Quantitative Easing
stock broker

During the 2007/2008 stock market crash, the Federal Reserve began a strategy known as quantitative easing to try and breathe life back into the economy. This involved taking an active role in the market by way of printing money, then using that money to buy things like mortgage-backed securities and other financial assets in order to make the markets liquid again. The hope behind this strategy was that it might convince banks to free up credit for businesses hurt by the recession, who could then start spending money again and get the economy up and running. This policy is very bank and stock broker friendly, as the banks and financial companies tend to be the initial beneficiaries of this newly printed money.

However, there are a number of reasons for a stock broker to be wary of quantitative easing, first and foremost being that it hurts the dollar. The dollar, like any other currency, goes down in value when there are more dollars in circulation. Already on shaky ground due to government debt and previous QE policies, only the far greater crisis with the euro has kept the value of the dollar from falling any further. The pre-eminence of the dollar has played a huge role in the United States' financial success, because other countries invest in U.S. currency, but with the dollar falling in value, the U.S. position as the economic center of the world could be in jeopardy.

Quantitative easing is designed to put as much liquid currency into the markets as possible to convince banks to invest in the small businesses that drive our economy. However, in this globalized investment economy, the value of the dollar in relation to other world currencies may be more important to the health of U.S. finances. Every U.S. stock broker should be concerned about how far their dollars will go in the future. In the mean time, the value of the dollar drops, the Federal Reserve continues to suggest further quantitative easing procedures to try and fix the economy.

Home
Take me Home Mrs. Juno

About Juno
Want to know more about us? How we started? The People?

Advertising
Advertising Ideas? Feel free to click on Contact Us and tell us about it. We are not going to pollute our home page with your banner though.

Privacy Policy
We take your privacy extremely serious.

Online Trading Articles
General articles about online trading, stock brokers, stock trading and options trading.

Software
Take a look at all of the online trading and day trading software we have, true innovation at $4.95 a trade.

Help
We have a ton of questions already answered if you want to look yourself.

PLEASE READ THE IMPORTANT DISCLOSURES BELOW.

Securities products and services offered by Transcend Capital, LLC, a registered broker dealer, Member FINRA/SIPC.
6500 River Place Blvd., Bldg. 4, Ste. 102, Austin, TX 78730. 512-623-7774.

The information contained on this Web site does not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell securities. No information found on this Web site should be construed by any consumer as investment advice, tax advice or a recommendation or solicitation to effect or attempt to effect transactions in securities.

Symbols and price and volume data shown here are for illustrative purposes only. Transcend Capital and/or its employees and/or officers may have positions in securities referenced herein, and may, as principal or agent, buy from or sell to clients. Account access, trade executions, and system response may be adversely affected by market conditions, quote delays, system performance, and other factors.

Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.

Options carry a high level of risk and are not suitable for all investors. Please read the Options Disclosures Document Characteristics and Risks of Standardized Options before considering any option transaction

Certain requirements must be met to trade options at Transcend Capital. With long options, investors may lose 100% of funds invested. Multiple leg options strategies will involve multiple commissions. Spread trading must be done in a margin account. Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction.

Diversification and Asset Allocation strategies do not ensure a profit and cannot protect against losses in a declining market. While an investment in a specific sector may involve a greater degree of risk than an investment with greater diversification, strategies that include broadly diversified portfolios do not ensure a profit and do not protect against losses.

Additional advanced options education is available from the OIC.

Transcend Capital, LLC and JunoTrade Corporation are not legally affiliated.

User Name/Password do not match.
Please enter a Valid User Name and Password.

Forgot your Password?
Enter your Email Address in the form below and select 'Reset' and we will ask you to answer your Security Question before we Email a temporary password to you.

Forgot your Email Address?
Please call 1-800-284-8114 with you Account number and your personal information including the answer to your Security Question.

Email Address: