Registered: May 2009
08-08-12 07:42 PM
Quote from piezoe:
So you think that Fed monetary policy, inflation, and the decision to abandon Bretton Woods have had no effect on market direction, huh.
Suppose it's raining outside. Seeing this, you go out with an umbrella. For whatever reason it stops raining right there and then. The obvious conclusion is that taking an umbrella out when it's raining is the perfect 'cure' for rain.
That's precisely the logic you are applying here. QE, money printing etc. is the government's protection against the crumbling economy and does precisely FA to fix it. The fact that the stock market started to go up in March 2009, 5 months after the Fed started QE1, is coincidental.
If you want to know more about dead cat bounces, look at other major bear markets in history. But I guess like most people here, history is not a strong point.