0 notes &
Thursday’s madness, the announcement of a third round of quantitative easing by the Federal Reserve, sent the S&P 500 up more than 1.6%, and pushed major indices to multi-year highs.
Many praised the move, but it my view, it’s yet another stunt that we’ll all pay dearly for later. More “funny-money,” and more money printing will not, in my opinion, provide what’s necessary to bring our economy back to life.
It might make everyone feel good for a while, as Ben Bernanke and his merry bandits use money that we don’t have, but that they can print, to go out into the markets and buy $40 billion worth of mortgage-backed paper per month for as long as they need, or want to.
…it is a great time to refinance, or take out a mortgage, that is, if you can get a loan. Lending standards have tightened significantly, which is an overall positive, but it’s just tougher for many to borrow.
… I would not be shocked to see gold breach $2,000 an ounce, and silver back above $40 within the next year, perhaps sooner. If you own either, or both, you can thank Ben Bernanke.
http://www.thestreet.com/story/11701972/2/surviving-fed-madness.html
