Heads I Win, Tails You Lose
Written by Keith Springer 5.23.13 
Ben Bernanke is the keeper of the coin that the Federal Reserve uses to flip when deciding policy. Since the crash, investors have been torn. On one hand, they know that the massive stimulus programs will do more harm than good for the economy in the long term. On the other hand, it has been the sugar in the cake fueling this market rally, and no one wants to give up sweets no matter how bad they are for you.
Just yesterday, Bernanke spoke to congress declaring that ending the QE programs prematurely would endanger the recovery, just as the economy remains hampered by high unemployment and government spending cuts. Naturally this was good news, causing the market to rally. However in the Fed minutes that followed, it was revealed that they could decide to scale back the pace of bond purchases at one of the “next few meetings” if the economic recovery looked set to maintain forward momentum. Is this a hint of things to come or just CYA? Only time will tell, but clearly the Fed operates on the Ralph Kramden “heads I win, tails you lose” platform. (more…)



















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