6 votes

Bernanke & the FED Is Indeed Driving the Stock Market

The following chart plots the Fed’s total assets against the S&P500 index. Hmm, wonder why they didn't taper yet.

http://consultingbyrpm.com/blog/2013/09/yes-virginia-bernank...

Fed’s Evans Suggests Tapering Could Start Later Than October:

Federal Reserve Bank of Chicago President Charles Evans said Friday that the U.S. central bank could start reducing its $85 billion-a-month bond-buying program at its October policy meeting, but it could happen later than that.

“We could make a decision in October,” Mr. Evans told reporters on the sidelines of a monetary policy conference in Oslo, adding, “We need to see further developments of the positive variety for the economy to have that added confidence. It wouldn’t surprise me if we go a little bit longer.”

http://blogs.wsj.com/economics/2013/09/27/feds-evans-suggest...



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The problem isn't too much QE, it's too little. If we tripled QE, just think how the economy would take off! Hey let's increase QE tenfold. No, how about 100 fold! We'll all be rich.

Want to pet my kitty?

Paul Krugman, PhD, Ivy League

Did anyone ever doubt it?

WHY?

Its so damned obvious.

DJP333's picture

I think the chart is a good tool

to show people (who are not on the DP) that the increase in the stock market has nothing to do with the economy getting better. Its yet another bubble caused by the FED.

"It’s not pessimistic, brother, because this is the blues. We are blues people. The blues aren’t pessimistic. We’re prisoners of hope but we tell the truth and the truth is dark. That’s different." ~CW

DJP333's picture

And then there's the debt ceiling, more FED please.....

“The United States can pay any debt it has, because we can always print money to do that. So there is zero probability of default,” Alan Greenspan said on NBC's ‘Meet the Press’ in August.

Limitless ceiling? US debt doomsday approaches:
http://rt.com/business/us-debt-ceiling-default-384/

"It’s not pessimistic, brother, because this is the blues. We are blues people. The blues aren’t pessimistic. We’re prisoners of hope but we tell the truth and the truth is dark. That’s different." ~CW