Sunday, October 10, 2010

BOUGHT AND BORROWED and LUDICROUS

IN MArch of 2009 the FED began quantitative easing, that ignited the bull market. In August of this year stocks began to fade, so then the FED began another program called POMO, and this gave us the best Sept in 70 years.

Now there is talk of QE II, and the market stalked even higher....so should you "fight the FED?"

Many will argue that inflating asset prices if it helps spur consumer spending is worth it.

It's legal to program super fast computers to trade millions of times per day with no human attendant and this provides nearly 70% of NYSE volume? provides liquidity? or turned stock market into a rigged freak show?

SO I ask this question......what is the stock market and how can it any longer represent the real economy when majority of trades are based on an algorythm and has nothing to do with what the company does, earnings, management or anything at all?

D

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