There’s a Madman at the Wheel… Someone Stop Him Before We Crash
by Phoenix Capital Research
Stocks are rallying because Ben Bernanke speaks at Congress on Wednesday. Stocks historically rally into Bernanke speeches.
The markets are at new all time highs. But it is now clear that Bernanke has absolutely no clue what he’s doing.
Just two months ago, Bernanke hinted at tapering QE. Note, he didn’t actually taper anything he just hinted at it.
This talk of tightening lasted all of two months. And remember, throughout this period of hinted the Fed was spending $85 BILLION per month via QE 3 and QE 4.
Imagine if you were in the car with a driver who was going 85 MPH down a road with a speed limit of 35 MPH (this isn’t a bad metaphor as there is absolutely no evidence that QE creates jobs or GDP growth so there is no reason for the Fed to be doing it in the first place).
The guy is obviously out of control. The dangers of driving this fast are myriad (crashing, running someone over, etc.) while the benefits (you might get where you want to go a little faster assuming you don’t crash) are minimal.