Stocks took off after the taper came through. Wow, throw all my predictions out the window. My prediction was a smooth correction of twenty percent over two quarters. Growth is still running high, so far austerity seems to be working. Maybe this market can do a random sideways walk for a while.
But if that really was a dead cat flying, then long term growth is real, fed or not, we going to third gear. It means the QE causes good is likely untrue, and this puts to death the idea that government multipliers are always greater than one.
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