David Blanchflower, a former Bank of England policy maker who now teaches at Dartmouth, said the following: “The reason that stocks have erased all their losses is entirely because of QE (fallacy of so-called free money). To argue that that’s independent of the actions of the Fed shows no understanding of what the Fed is doing and what they did.” So, there you have it. Through the Fed's policy of so-called "free money," not real economic growth or real job growth, you have the explanation on why the market is completely disconnected from economic reality. As I stated many time previously, the main benefactor has been Wall Street, not Main Street.
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