Thursday, January 20, 2011

Yes, Ben is printing money and parking it in the stock market

In recent weeks, the Federal Reserve has been turning to an unusual metric to prove the potency of its bond-buying program: the stock market.

Comments from Fed Chairman Ben Bernanke and other officials, as well as research by the central bank, cite rising stock prices as a sign that the central bank’s $600 billion bond-buying program is working to bolster the economy. WSJ
This is Ben stuck with a mistake and firing the 'Expectation Generator' to cover his mistake.  Take a look at the curve today, breaking records for steepness.  The only thing the stock market is selling is paper, to Ben.

No comments: