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The Bernank Goes All In
Monty Pelerin says:
The euphoria initially expressed by markets to unending Quantitative Easing (money printing) may be playing out. The last couple of days were mediocre in terms of stock market performance. For investors, it is a difficult time. Do you play for the inflation-induced bounce in stocks? That is the likely outcome, for a while, although recognize that it has nothing to do with an improving economy or an improvement in corporate earnings.
For the country, nothing good can come of Bernanke’s latest attempt to kick the can down the road. The problem is caused by overlarge government that is unable to fund itself. This problem is beyond the Fed’s responsibility and one that the Fed cannot solve. All Bernanke has done is enable the political miscreants to continue behaving badly. He has provided them with another hit of heroin when “cold turkey” is the only treatment to which they and the economy will respond.
Tyler Durden discusses the issue and provides some video:
