Will the current bounce last? Will analysts keep setting the bar low to help stocks rise? Will beating bad numbers remain the game by which stocks are priced? The future level of stock market indices cannot be predicted because the calculations that will go into future market manipulations are yet unmade.
A massive amount of quantitative easing (money supply inflation) is underway in the U.S. and around the world. The Bank of England, for example, has committed 75 billion pounds ($111 billion U.S.) to purchase government bonds and corporate paper.
All right, not everything in today’s Farrell commentary is erudite or even proportional. Nevertheless, he does make some valuable points. It is apparent that America is setting up various disgruntled interests in the world to make war with us. The U.S. decision to monetize debts in the face of a deepening recession is problematic. Quantitative easing (as it is called) will expose our international friends, competitors and enemies to economic complications as our U.S.