KISS YOUR IRA GOOD-BYE
Stock-market rise depends on Fed continuing to buy U.S. debt
JEROME R. CORSI
WND.com
Dec. 16, 2013
NEW YORK – The recent volatility of the Dow Jones Industrial Average indicates savvy investors on Wall Street are worried.
Should the Federal Reserve, under Chairman Ben Bernanke’s replacement, “taper” the current Fed policy of buying U.S. Treasury debt, investors anticipate a sharp downward market correction, possibly even a market crash.
Last week, the Dow fell below 16,000 only to rally back over the barrier as Federal Reserve officials attempted to calm nervous investors.
This week, the U.S. Senate is expected to confirm Janet Yellen to replace Bernanke as Fed chief, despite the continuing attempt by Republicans to slow the confirmation of Obama administration appointees after Senate Majority Leader Harry Reid employed the “nuclear option,” ending the requirement for a supermajority of 60 votes to force a vote.
Yellen, currently vice chairman of the Board of Governors of the Federal Reserve, is expected to begin ramping down Bernanke’s policy known as “Quantitative Easing.” Under the policy, the Federal Reserve has bought billions of dollars of U.S. Treasury debt to keep interest rates as close to zero as possible.
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