Now that stocks are again at all time highs, Fed chatter seems again trying to sound a little more hawkish by emphasizing QE exit. http://www.reuters.com/article/2013/08/02/us-usa-fed-bullard-unemployment-idUSBRE97112A20130802
Fed won't end QE ever, period. Just like all these "government support" projects that started in 2009 around the world are still going. There's absolutely no reason why QE still runs considering the market hit record highs. Plenty of countries in Europe raised taxes citing the crisis as a reason, yet the economy has bounced back but of course none of the taxes have been reset to old levels. There's no accountability with people like this.
+1. just another bubble in making. there was a great depression.great recession. what we have now-i call it great disconnection. markets are making new all time highs every f** day like we have gdp of 5+%. then why do we have 0% rates and on life support of QE ∞? but looks like at least the bond market ain't buying this BS no more.
Yes, economist Gary Shilling also calls it "the Grand Disconnect." The Fed has a tiger (raised since a cub) by the tail and is afraid to let go, except by half-hearted attempts at tapering that no market no longer believes in.
Market overheats whispers of tapering, mkt pulls back whispers of no tapering, short squeeze print new highs...rinse repeat. They've mastered it
The Fed thinks they've mastered the art of making the indexes going up 30% plus annually ad infinitum. Only good thing that can be said on a relative basis is that the US is not Weimar Germany where stocks were going up 20% per month.