from Daily Reckoning.com:
The Keynesian disaster recovery plan has been to lower rates, force people to take more risk in search of yield, and entice others to borrow and spend and, magically, more jobs will be created. If people won’t buy stocks, central banks will.
Back in 2011, Ben Bernanke, when asked if QE2 was driving up stock prices, answered, “I do think that our policies have contributed to a stronger stock market, just as they did in March of 2009.”
He went on to say since he signaled the Fed would likely unveil QE2 during a Jackson Hole speech, the Russell 2000 index of small cap stocks was up 30%, even more than the 15-20% rise in blue chip indexes.
Please follow SGT Report on Twitter & help share the message.