The bounce back came following reporting on the Fed that it will not likely retreat now from its QE agenda - meaning it will continue to dump money into Wall Street and Wall Street will continue to not lend it but buy stocks with it, again, until they are again willing to admit the long term folly of that and sell again to get some cash out before the lemmings start to get in on their sell off.
The small investor has been taken for a ride by the Fed and the Wall Street banks, and the Fed and the big banks will keep doing it until the Fed is finally forced to raise interest rates; at which time there will be another sell-off before the unwinding of QE starts raising the interest rates & the inflation rate.
Yellen et all are screwing especially many of “the elderly” with money put away in savings and other things with fixed returns based on today’s low interest rates. The same citizens will again get screwed when the unwinding of the Fed’s QE hits and inflation begins to eat, from its direction, at the value of what “the elderly” have put away. What the elderly have saved is being made worth less (growing less) by what the Fed is doing now and the inflation that will result from the unwinding of the Fed’s QE will make what the elderly have left to spend worth less.
Recently Yellen made a speech about “inequality” in our economy, and she tried to say it was a cause of poor economic performance. Her argument is false and she doesn’t have a moral leg to stand on on that point, given the losers in our economy the Fed’s programs are creating.
Yeah, they somewhat sort of kinda happened together so folks decided that U.S. gov't (total annual spending $3.8T) is supposed to be in control of the all the buying and selling of corp. stocks (total annual trade volume: $22.5T). OK, so people really really want to think that the gov't is more powerful than the free market but I honestly can't believe it works that way.
Yellen made a speech about “inequality”
Right! The speech was "Perspectives on Inequality and Opportunity from the Survey of Consumer Finances" and I got my hopes up that since her salary was four times the U.S. median household income that she was about to share w/ me but I checked out the speech and all she said was--
I cannot offer any conclusions about how much these factors influence income and wealth inequality. I do believe that these are important questions, and I hope that further research will help answer them.
Excellent post. The market goes straight up folks can not even see the correlation between the Fed and market valuations. You are rational. The market is rational. The Fed is a freaking disaster. Interest rates can never again be rational because the debt is so huge that we can not service it at rational market rates. The Fed can not unwind squat. Think Japan and you’ll know where we are headed.