healthmyths
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- Sep 19, 2011
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The S&P 500 (^GSPC) doubled in value from November 2008 to October 2014, coinciding with the Federal Reserve Bankās āquantitative easingā asset purchasing program. After three rounds of āQE,ā where the Fed poured billions of dollars into the bond market monthly, the Fedās balance sheet went from $2.1 trillion to $4.5 trillion.
This isnāt just a spurious correlation, according to economist Brian Barnier, principal at ValueBridge Advisors and founder of FedDashboard.com. Whatās more, he says previous bull runs in the market lasting several years can also be explained by single factors each time.
As the financial crisis reached a fevered pitch in 2008, the Federal Reserve took to flooding the financial market with dollars by buying up bonds. Simultaneously, interest rates fell dramatically, as bond yields move in the opposite direction of bond prices. Barnier sees the Fed as responsible for over 93% of the market from the start of QE until today. During the first half of 2013, the Fed caused the entire marketās growth, he said.
The Fed caused 93% of the entire stock market's move since 2008: Analysis
So now we have Trump's Free market.... Free to Fall and Free to rebound!
Where is the Federal Reserve? NO WHERE folks because Yellen the racist is no longer in charge!
QE has left the USA with lower debt rating PLUS adding $4.5 trillion to total debt of the USA.
Any positive values?
Well at least there is NO QE adding to the national debt!
And the stealing of US technology developments that "tariff" on US companies selling in China will be equalized!
This isnāt just a spurious correlation, according to economist Brian Barnier, principal at ValueBridge Advisors and founder of FedDashboard.com. Whatās more, he says previous bull runs in the market lasting several years can also be explained by single factors each time.
As the financial crisis reached a fevered pitch in 2008, the Federal Reserve took to flooding the financial market with dollars by buying up bonds. Simultaneously, interest rates fell dramatically, as bond yields move in the opposite direction of bond prices. Barnier sees the Fed as responsible for over 93% of the market from the start of QE until today. During the first half of 2013, the Fed caused the entire marketās growth, he said.
The Fed caused 93% of the entire stock market's move since 2008: Analysis
So now we have Trump's Free market.... Free to Fall and Free to rebound!
Where is the Federal Reserve? NO WHERE folks because Yellen the racist is no longer in charge!
QE has left the USA with lower debt rating PLUS adding $4.5 trillion to total debt of the USA.
Any positive values?
Well at least there is NO QE adding to the national debt!
And the stealing of US technology developments that "tariff" on US companies selling in China will be equalized!
