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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (48552)	4/11/2013 4:07:35 PM
From: Fintas	Read Replies (1) \| Respond to of 220925

Did you forget that downgrade of USA debt? There's lots of motivation to avoid a recession or a country that is deep in deb and businesses not able to raise cash or expand. Thus bring the numbers UP to let the number crunchers get warm and fuzzies. IF that doesn't work form a committee to put those in jail who were responsible for the downgrade. There is much more to this than meets the eye. Regardless sit back, relax and know your fed is working for you while you sleep. <G> Fintas

To: Fiscally Conservative who wrote (48552)	4/11/2013 4:24:00 PM
From: KyrosL	Read Replies (3) \| Respond to of 220925

The Fed has two specific (and somewhat contradictory) mandates from Congress: "maximize" employment, AND keep prices stable i.e. preserve the value of the currency. The employment mandate is unique to our Fed and was added relatively recently (1977). The Fed must obey both these mandates, even though many economists believe they are contradictory. It's ridiculous for Congress to criticize the Fed for printing money, while not doing anything to restore the Fed's old single mandate of preserving the value of the currency. So, as long as unemployment is high, the Fed will keep using its one remaining blunt instrument: print money, especially when its other mandate, low CPI inflation, is behaving. The markets have come back huge, but they are not yet up to their old highs, inflation adjusted. The old 2000 SPX high of 1550, corresponds to 2090 in today's dollars.