Why is that the stock market soars every time the Federal Reserve Bank finds a clever new way to inject more free money into the banking system?
The Fed would not be doing this if a) it’s last plan worked and b) it wasn’t scared of the prospect of a global economic collapse. It is simply not good news when the Fed does something it has never done before, like last week when it rallied central banks around the world to provide cheaper dollars to European banks. Markets, however, rally, because there’s more free Fed money up for grabs.
None dare call it socialism. But if the Fed were providing interest-free loans to welfare moms instead of bankers, you can bet they would.
Click here to read my column in The Sunday Wall Street Journalism.