by Pam Martens and Russ Martens, Wall Street on Parade:
Pundits were out in force yesterday celebrating the six-year anniversary of the bull market in stocks. Notably, no one was talking about the fact that the runup in stock prices has coincided with a six-year zero interest-rate policy (ZIRP) by the Federal Reserve, making the stock market a dandy casino to borrow low on margin and speculate high on risk; or, in the case of corporations, to issue tons of new debt and buy back their own stock.
As mind-numbing as it is to comprehend, it was December 16, 2008 when the Federal Open Market Committee of the Federal Reserve released this statement: “The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.” And there we have stayed for six long, arduous years with nothing but periodic threats to hike rates coming from the Fed.
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