Bernanke will cut the rates 1 more time so it equals zero. That's right, 3 month t-bill will have a yield enforced at 0. This will push billions into longer dated series and others
Mark my words, years from now when our fake manipulated economy still is in the dumps people will not blame Obama. The man who will be known as the destroyer of America will be Ben Bernanke. The hubris these fools at the fed engage in is shocking. They somehow think that when they achieve their ends and force every last bastard into the stock market that it will not end badly. When this bubble which has just started ends it will be the biggest popping of all time. I mean shit things won't even get started until we pass the all time high in the dow, mom and pop will not commit to all signs are flashing green. Bernanke wants Mom and Pop to panic and chase the stock market higher, show me where the fed is mandated to do this, last time I checked controlling inflation and maximizing employment is their job.
I believe the thinking goes something like: If the stock market goes up, people will think they have more wealth, so they will spend more and that means companies will see that spending and start hiring to produce more and there will be sugar and rainbows everywhere! Except that is a trickle-UP theory, and we know those don't work because money has to flow from the Top-down. And I'm not sure what we are producing anymore in the US that consumers want to buy since all that stuff is made in Asia now, so not seeing how it helps hiring in the US. But otherwise, it's a great plan!
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Since Bubble ben bernanke cannot put tens of millions of people back to work and cannot fix the housing crisis all he knows how to do is continue to spend to prop up the stock market and create an illusion of growth in this economy. The problem with this is that 45 million people are sitting in poverty, and even those who aren't are lucky to be sitting on investments worth 100k. The only ones feeling this "wealth effect" are the ones in upper class, anyone in the other lower classes aren't seeing any kind of "wealth effect" from a strong market. To think you can turn around an economy based on the gains in the stock market is just ludicrous.
The end game to Bernankes madness might consist of a plan to distribute stock to all people in America so they can all share in his plan. A better plan would be to just mail a check to everyone. This shit is all madness, everyday I want to throw my remote through my Tv when I hear Steve Liesman defending the plan. It seems like for every ten fed lovers they have on, cnbc has only one disenter.
Also to anyone who agrees that the fed has become a joke, don't just contribute hear on et. Every week I send an email to the federal reserve which i know never gets read, it does make me feel better though.