Stay Tuned for Dow Doldrums
The stock market’s rise to astronomic highs in the last couple of years is not the result of a robust economy, as the Obama Administration would have you believe. But its record advance has come from a little help from a friend, specifically, the Federal Reserve Bank and its quantitative easing, or QE, plan, an unconventional monetary policy used to stimulate the economy. “We never have recovered from anything,” says financial commentator Peter Schiff. “We just got sicker. Except we just didn’t feel the pain because we had all this QE novacaine.” The QE policy, at its height, was pumping $85 billion into the bond markets, thus easing interest rates and driving the stock market to record levels. In recent months, the monetary infusion has been pared to $65 billion, prompting Schiff to predict the markets are going to collapse unless they get another fix from the Fed.
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