The Fed's Plan was always pushing Stocks higher

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You bring long-term rates down, and the price to earnings ratios in the equity markets go up, which is exactly what they planned to do and it has happened that way.

Former Federal Reserve Chairman Alan Greenspan admitted in an interview with Sara Eisen that quantitative easing did what it was supposed to do, which was to inflate stock prices and drive multiple expansion.

He was confused as to why things such as corporate earnings, capital spending, and productivity have declined given how much QE was pumped into the system. The answer to the riddle of course, is that QE was never intended to help fix anything fundamentally, it was as Kyle Bass said recently, simply a mechanism to transfer wealth and make the rich richer.

That’s all, no more and no less!

Read the full article at Zerohedge.com

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