Wednesday, April 04, 2012

Speculators Want Another Stimulus

"There's been a near-perfect correlation in equities gains each time the Fed induced more liquidity into the marketplace".

WSJ: US Stocks Sink On Dampened Expectations For Fed Stimulus

3 comments:

Arvind said...

Prices adjust for inflation. Price rise due to inflation is not a real gain and professional speculators know this. They are not the ones who want the stimulus.


The ones who want the stimulus are the socialists in the Democrat Party who will get grants from the stimulus and the top management of many investment banks and Wall Street firms (btw, the majority of this corrupt bunch are Democrat Party supporters as well as seen from the MF Global scam).

Pagan said...

Many seem to think so, but in the end, it is just individual opinion:

#1: No signs of another round of quantitative easing -- and investors are not pleased.

#2: All of this is a big disappointment for bulls looking for central bank largess to send stocks and other risky assets higher.

Arvind said...

This simply shows lack of understanding of politics. One of the earliest impetus for the TEA Party came from a trading floor where Rick Santelli called for protests.

The media is trying to have it both ways. They feel bitter that most traders oppose the Democrats but now want to claim that the traders support Democrat policies like economic stimulus. Democrats are the ones who want a stimulus but they want to shift the responsibility to the traders.

If your claim is that the management of Wall Street firms want the bailouts, I agree. Not the speculators.