In the past two years, I’ve noticed an interesting new phenomenon. Whenever the stock market drops, the actors of my favorite soap operas that play continuously on CNBC and Bloomberg immediately begin to speculate when the Federal Reserve will “do something.”
The punch line in these cliffhanger TV shows usually goes something like, “The stock market decline has led traders to assume that the next version of quantitative easing (QE) is just around the corner.” QE is just a fancy way of saying the Fed will print money and buy something to make the price increase.
It’s interesting to see how dependent stock market investors have become. It seems to be another case of how we like Capitalism when we are making money, but we embrace Socialism when we are losing money.
Read more...The Fed’s Support of Stock Prices | the Blog of the Real Estate Center
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.