This did not stop the DOW from dropping 81 and the S&P from dropping 10.
Allegedly investors are now worried that its all going so well that the Fed might sooner rather than later stop pumping cash. Do we sense a new addiction.
Stocks fell on Wednesday as investors worried the Federal Reserve might be closer to reducing vast efforts that have shored up the economy and supported big gains in asset markets. sourceRead the following article and you might stumble across one of the biggest components to the stock markets recent rise - government money.
Reuters: Fed says U.S. recovery is underway
The Fed said it would gradually slow the pace of its purchases of mortgage-related debt in order to promote a smooth transition in markets.
But in a slight tweak of language in its statement, the Fed made clear it would purchase $1.25 trillion of agency mortgage-backed securities.
5 comments:
Remove the Fed. and the Treasury from the Market and it falls by half in a few days. This is a market being supported by the taxpayer where only the top 10% profit. Socialism for the rich.
Bingo.
I would suspect that its even less than 10% that are profiting from this recession and recovery.
What remains of the middle class is only trying to recoup some of the losses anywhere from say 25% to 75% losses from retirement benefits and portfolios.
This is a lot of the reason why Obama is pumping money in. He's trying to keep his base. This is also why there is so much reaction from Republicans. Because they know that if the DOW stays at 6K and such, they are back in power real fast.
Sound reasoning. It just pisses me off that were all being played by a tiny bunch of oligarchs that can afford to gamble day and night and still never lose. They've got us all by the short hairs, don't they? Even Obama is forced in a way to do THEIR bidding. Having lost much of their political power now they are showing all of us who really owns and runs America, NOT any of us. Amazingly, we don't even know who these people are!
GK wrote: "Having lost much of their political power now they are showing all of us who really owns and runs America, NOT any of us. Amazingly, we don't even know who these people are!"
Ah yes, this is a fascinating study. I have to say I haven't gotten far with it, other than the usual suspects in Switzerland and secret meetings in California, a couple of books and such. Some call them the ICPE - Inner Core Power Elite, the invisible rulers of the world.
interesting link
Power Elite
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