Posted 11 years ago on Aug. 31, 2012, 10:25 p.m. EST by richardkentgates
This content is user submitted and not an official statement
More debt is ok if it goes to Wall Street?
It amazes me that this continues while Obama promises middle out economics. Every round of QE and printing from Operation Twists has been gobbled up by the banks to keep prices artificially high in the face of low demand. What is even more astonishing is that these hundreds of billions of dollars are being added to the national debt, and the GOP is mum about the entire thing. So is the MSM. Make no mistake, the money the FED prints under these programs are not going to rebuild roads or assist people with upside down mortgages.
Maybe none of them say anything because deep down even when they say "we should be rebuilding the middle class" what they really mean is "look over here while we finish draining you and the entire global economy".
Now, with no commercial interruption, this news...
Stocks rise on Bernanke endorsement of renewed stimulus
NEW YORK — Ben Bernanke’s much-awaited endorsement of more Federal Reserve stimulus Friday gave stocks a solid boost, though tempered by his picture of an economy that remains weak and vulnerable.
The Dow Jones Industrial Average added 90.13 points (0.69 percent), closing at 13,090.84.
The broad-based S&P 500 rose 7.10 (0.51 percent) to 1,406.58, while the tech-rich Nasdaq climbed 18.25 (0.60 percent) to 3,066.96.
In his speech at a central bankers summit in Jackson Hole, Wyoming, Fed Chairman Bernanke warned that stagnation in the US labor market was “a grave concern” and signaled he would be pushing for more help for the sluggish economy when the Fed’s policy board meets in 12 days.
“Chairman Bernanke’s comments should be taken positively as he indicated a willingness to increase support to the economy,” said Michael James, an analyst at Wedbush Morgan Securities.
James said that a third round of Fed quantitative easing, dubbed QE3, was “more likely than unlikely, based on my reading of his commentary today, and that will continue to be positive for market sentiment next week.”
My final comments
US labor market was “a grave concern” and signaled he would be pushing for more help for the sluggish economy when the Fed’s policy board meets in 12 days.
This is trickle down. What is being said here is that to deal with unemployment, they are going to print more money and hand it over to the banks. They have already done this with installments from Operation Twist and QE1 & QE2 to the tune of a few trillion dollars just in the past few years. Has it created jobs? What was unemployment 3 years ago, where is it now? Yes, Obama saved the auto industry but that one industry is no more the entire economy than is Wall Street. Obama needs to get of the campaign trial and do his job instead of outsourcing it to the FED. I would vote for that.