The Fed(s) is/are not only monetizing the federal debt, they are also monetizing the stock market.
By Daniel at 11 September, 2009, 6:06 pm
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Dr. Brett Steenbarger wrote last week about an amazing phenom in which gargantuan amounts of money are flooding into the meg-financials, mostly at the end of the day. These are the same cos. that we all bailed out –AIG, Citibank, BofA, JP Morgan, Fannie, Freddie, Wells Fargo, etc. This, despite that they are still facing staggering loan losses and are all insolvent.
Dr. Steenbarger wondered who would continue buying the most trouble financial institutions with so much cash that it amounts to 1/3 of the entire volume of the NYSE — every day! On some days, the volume exchanging hands for some of these stocks amounts to more than the entire volume of outstanding stock for the entire company!
Gee, who has that kind of cash? Oh that;s right! The taxpayers!
The point of all this is that our government is not only printing money to finance our debt, but they are printing money to drive stocks higher also. Japan does this too, but they do it openly. Here, our officials do it through the back door!
Steve Benard
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Avoid those miserable colds. ,