Bernanke: QE2 is About Boosting Stocks

[LuckyTheDog]

In an op-ed piece in today’s Washington Post, Fed Chairman Ben Bernanke takes the extraordinary step of going beyond yesterday’s statement by the Federal Open Market Committee to explain more fully the central bank’s decision to purchase an additional $600 billion in Treasuries. And, as stock markets around the world are figuring out today, so-called QE2 is largely aimed at lifting equity values.

The Fed’s moves are about “easing financial conditions,” which Bernanke says will foster economic growth. “For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion,” he writes.

More here: http://blogs.barrons.com/stockstowatchtoday/2010/11/04/bernanke-qe2-is-about-boosting-stocks/

Of course, among teabaggers, the big question is: "Why is the Fed spending $600 billion to buy a retired ocean liner?"

http://en.wikipedia.org/wiki/RMS_Queen_Elizabeth_2

[notesdev]

1. This is enormously important

The Fed is devaluing the dollar in order to do this. YOU will pay the price for this, in gas, food, and all the other necessities of life. This is basically a massive tax being levied to support financial institutions who caused this crisis through deliberate fraud.

Reapppointing Bernanke was perhaps the single worst act of the Obama administration to date, and he'll be hard pressed to top it.

[cbdo2007]

4. Agree about Bernanke and I strongly feel that Obama is toast in 2012 unless

he clears out all of his currently financial advisor team and brings in a whole new team.

I'm a big Obama supporter but unfortunately he's being fooled by these people who are only interested in lining their OWN pockets.

[Poboy]

5. Listen to this poster. He has it exactly right. The reason stocks are going up is

because the dollar is being devalued. The cause and effect are direct and undeniable.

[Fresh_Start]

2. instead of boosting stocks, how about boosting income

for people who don't have stock portfolios.

[Kalyke]

3. And there's a lot more of us incomers-only people.