Bill Bonner: Does the Fed help make people better off?

“There were voices in the Fed, said the news, urging caution. There would be no further monetary stimulus measures, said the commentators. Investors grew cautious. Then, by the end of the week, investors were rolling the dice again. The Fed was working hard to fight the impression that it had either lost its nerve or recovered its senses. With the wind of the Fed at their backs, investors put out full sail. On Friday, they were skimming along nicely, riding high on a tide of EZ money. ‘Don’t fight the Fed,’ said the analysts. The Fed is pumping…stocks are going to rise. Of course, it’s not that simple. Zimbabwe pumped. Stocks rose…for a while.”

http://www.equitymaster.com/dailyreckoning/detail.asp?date=05/06/2013&story=1&title=Does-the-Fed-help-make-people-better-off