75% of all treasury paper is now bought by the Federal Reserve. Where do you think the market would be for t-notes if the Fed didn't buy them? Serious question.
Once the SPX starts to break down, 1400, 1350, 1300, 1250 BUBBLE ben bernanke is going to take everything he hasnt taken (which isnt much now) and throw it all at the market. All QE has done was prop up markets and asset prices, that can only last so long.
Till mid 2015? Really, Im thinking more like 2020+ "The Fed also took the dramatic step of saying it expects to keep short-term interest rates unchanged even if the recovery strengthens. It also pushed out the calendar date for the expected first rate hike until mid-2015."
It's inevitable...the sad part is we have just as many delusional idiots on this board who would support this type of monetary "insanity". The same folks who never see inflation, who continue to argue that it was "the only course of action", etc, etc... We'll see just how damaging 8 years of ZIRP has been well before 2015. "Zero sum" as in bailout of the financial institutions at all costs kills off many other sectors of this patchwork economy.
I support this "insanity" because it is working and it is better than the alternative. I am very concerned about present inflation and future inflation. But inflation isn't the only thing the Fed has to be concerned about.