Skip to comments.Obamanomics: making bad news into good times — for some
Posted on 06/26/2013 5:53:56 PM PDT by Abakumov
Economic growth goes sharply down, while stocks go sharply up. Welcome to Obamanomics.
On Wednesday the Commerce Department released a gloomy revised report on the first quarter of 2013. Gross domestic product (GDP) growth was revised down to 1.8% from the original 2.4%. Consumer spending, estimated at 3.4%, turned out to be 2.6% Every category sank with the exception of home construction and government spending, the latter of which was mostly pre-sequestration.
Bad news, right? Not to the stock market. Broad markets closed up almost 1% Wednesday after suffering a slump late last week. You would think that a weaker-than-believed economy would make investors wary. But that only makes intuitive sense in free market economies, not in the Fed-fuelled bizarro-world we currently live in.
(Excerpt) Read more at rare.us ...
Weaker than expected economic news means that the Fed is likely to keep pumping phantom dollars into the system, and hold down interest rates so the bond market remains depressed...which leaves the stock market as the remaining place to make money.