The Game Is Up: US Financial System Is Heading Towards A Major Collapse As QE Bubble Created By The Fed Is About To Burst

Tuesday, October 30, 2012
By Paul Martin

Investmentwatchblog.com
October 30th, 2012

S&P each Fed action: QE1 +50%, QE2 +30%, Twist +18%, QE3 & Twist +8%… so QE4 +4%, QE5 +2%, and QE6 +1%…

The Incredible Shrinking Half-Life Of Central Bank Action

It seems the market – or the collection of pre-programmed heuristic biases that make up the equity investing public (and machines) – is slowly but surely realizing the confidence trick that is the Fed’s Quantitative Easing programs. The following chart should clarify – to anyone placing their gambling chips on the hopes of another round of easing from the Fed – why the game is up. To wit, the reverse geometric progression of S&P 500 performance during each Fed action: QE1 +50%, QE2 +30%, Twist +18%, QE3 & Twist +8%… so QE4 +4%, QE5 +2%, and QE6 +1%…

The Rest…HERE

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