Bernanke Feels The Squeeze As Economy Falters | FoxNews.com: Why then, did stocks soar on Tuesday? Not only did markets have their best day in weeks, not even the largest earthquake to hit the East Coast in decades could shake them from their heights.
The answer is that the news on Tuesday continued a concatenation of economic indicators so bad that investors now believe that Federal Reserve Chairman Ben Bernanke will have no choice but to engage in another round of what is euphemistically called “quantitative easing” in Washington and on Wall Street.
Wall Streeters love when the Fed makes up money. They love it when the Fed drove interest rates to zero and kept them there. They love it when Congress spends stimulus money or gives a big tax cut. They love anything that creates a predictable change in the trajectory of the economy, no matter how small or how short. Anything that can be forecast can be profited from.
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