The Fed is printing money to the tune of $85 billion a month through Quantitative Easing. Supposedly it can keep doing this forever, and since there is no sign it will stop, and this money is being funneled into the stock market, the stock market can only go up. That QE money is finding its way into equities is easy to establish, partly because it is certainly not being used by the banks to lend money into the economy. Instead, it is being lent out by banks through their brokerage subsidiaries to investors wanting to leverage up and buy even more stocks in such a sure thing. It is a repeat of the housing bubble, in which each increase in an investor’s stock market portfolio value induces the investor to borrow more money to buy more stocks. - See more at
Posted on: Tue, 06 Aug 2013 16:59:02 +0000
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