“Everyone knows that even a little cutback in the Fed’s buyback program should mean falling stock and bond prices. A trillion dollars a year is a lot of money – in fact, it’s 7% of GDP. Imagine a corporation with annual revenue of $100 billion. Imagine that it buys back its own shares at the rate of $7 billion a year. Then try to imagine what would happen to the share price when the largest single buyer drops out. It doesn’t take a genius to figure it out. Even Fed economists can see it. That’s why they won’t taper. And everybody knows it. That’s why bad news is now good news. And good news is good news. Everything Is Good News!”
http://www.bonnerandpartners.com/is-bad-news-good-news-for-us-stocks/
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Tip Freedomwat.ch Staff with Bitcoin
Related posts:
Lew Rockwell: The Only Choice on November 6th
Trump's North Korea blockade threat amounts to illegal starvation
“Conspiracies don’t happen….here.”
Kafka’s America: Secret Courts, Secret Laws, and Total Surveillance
Glenn Greenwald: Andrew Sullivan, terrorism, and the art of distortion
Jacob Hornberger: More Judicial Deference on National-Security State Murder
Bill Bonner: Can the Fed's "Credit Cure" Really Work?
The National Archives: Lawbreaker and Cover-Upper
Hawks Take Flight: Why the Fed's Hypocritical Dialectic Continues
Germany’s Hitler-Era Homeschool Laws Still In (Brute) Force
Obama’s Next Big Blunder
Daniel Ellsberg: "We Are A Part of A Death Squad Country"
Obamacare’s ‘Cool Calculator: Work Disincentives Like Never Before
Bill Bonner: Goodbye, Motor City
The Simple Case for Gold