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The so-called "recovery" is built on masking tape and Elmer's glue. There's nothing real behind it, other than this constant pumping of federal money into the bond market to make money cheap to borrow and investments artificially inflated.SAN FRANCISCO (Reuters) - The Federal Reserve this week is expected to start winding down an epic economic stimulus that is credited with helping the United States claw back from the deepest slump since the Great Depression.
The Fed's $2.8 trillion "quantitative easing" program has, among other things, lifted stock prices to record highs, driven interest rates to record lows and put a floor under what had been a reeling housing market.
Yet barely a quarter of Americans even know what it is.
A poll leading up to the Fed's pivotal decision, expected Wednesday afternoon, found just 27 percent of U.S. adults could correctly pick the correct definition of quantitative easing from among five possible answers.
Quantitative easing, or QE for short, is when the Fed buys bonds in order to push down interest rates and boost the economy.
I fully expect the fed to keep superficially floating the market so we can all pretend everything is OK (and so billionaires can continue to take advantage of unsuspecting and inexperienced investors with no inside knowledge.) When taxes increase from the healthcare fiasco and total tax revenue collapses under the weight of those burdens, the first dominoes will begin to fall.
One day pretty soon, the pumping will end, and the music will stop. Millions won't have a chair to run to. People are going to get hurt, and the trickle down is going to be disastrous.