Can the market go down while the Fed is engaged in QE?
There should be very little pretense among objective observers that last week’s perpetual QE announcement could actually provide real economic stimulation.
Risky assets continue to surge, turning a blind eye to the weakening global economy.
The developments should provide new reasons for investors and economy watchers to abandon their faith in central bankers as super heroes capable of saving the economy.
Draghi and Bernanke know that markets need to be talked up, and they continue to do so unapologetically.
A critical response by Chairman Bernanke would be welcomed…
The Twist in essence reduces to a bank subsidy.
The Fed’s policy to «keep interest rates low for an extended period,» will inflict untold harm on the U.S. economy.