Fed chief Ben Bernanke has staked his reputation and the Federal reserve's reputation on the thesis that the Fed, through its unorthodox open-spigots program ("QE4 to infinity"), would send the Dow heavenward and thereby raise the spirits of America's consumers. This, in turn, was supposed to encourage Americans to buy ever-more. At the same time, the Fed's operation "twist" was supposed to bring long rates down. This, in turn, was calculated to lower mortgage rates, and thus, give a boost to the housing industry.
Turning to the stock market, just when it looked as though the Industrials and Transports were ready to rally to new highs, out came the mis-timed Google report, and as Google crashed, the stock market caved in along with the collapsing Google. And I wondered, did the stock market fall apart because of the unexpected Google report, or was it the non-confirmation by the Transports that finally triggered ... Log in or subscribe to continue reading.
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