Evidence That The Fed Prints For Wall Street (Not Main Street)

December 6th, 2013
in Op Ed

by Seth Mason, ECOMINOES.com

Here's some compelling evidence that the Federal Reserve--one of the primary culprits of the collapse of the economy--is looking out for Wall Street investors rather than the Main Street economy: the S&P and GDP expectations have been inversely proportional since the Fed announced "Operation Twist" (a bond buying scheme) in October, 2011.

Follow up:

As you can clearly see on this chart from Bloomberg (and labeled by Zero Hedge), Operation Twist has greatly benefited those whose incomes are strongly tied to the market. But, for the tens of millions of middle class Americans who were unfortunate enough to lose their financial standing during Fed's Great Recession, economic prospects aren't looking so good. (Article continues after chart.)

Evidence That The Fed Prints For Wall Street - S&P vs. GDP

See, the Fed didn't create its money printing and interest rate crushing schemes to benefit the Main Street economy. No, it created them to keep Wall Street fat cats happy. Whatever residual "wealth effect" the middle class has experienced from the stock market's artificial "boom" is merely icing on the cake for the Fed. Need more evidence? Look how the Fed's liquidity pumping has affected the stock market throughout this economic depression. (Article continues after chart.)

Evidence That The Fed Prints For Wall Street - S&P and QE

Every time the Fed has "made a move", the market has risen. Every time one of the Fed's liquidity pumping schemes has ended, the market has declined. And, recall that the Fed's monkeying will result in significant inflation. The Fed clearly favors Wall Street over you and me. And it'll continue to inflate bubbles until 2008 2.0, just a couple of years away by my watch.

You think the Yellin Fed is going to be different? Not!

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect.com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved