KrunchieKilleen
Long

DOWI: HOW OBAMA SAVED THE MARKET

INDEX:DOWI   DOW Industrials
113 4 1
On taking office in Jan 2009             , President Obama introduced Quantitative Easing and Zero Interest Rate Policy, immediately stimulating the markets into recovery from the economic collapse of 2007/ 2008. Money was induced back into equities; share prices followed a steep upslope, (with economic recovery following), until QE and ZIRP ended in 2015. The correction marking the end of QE and ZIRP may not be quite complete, but the resumption of a normal upslope is imminent if not already begun. Obama economic policies were successful.
Is it necessary to give Obama that much credit? Isn't the Federal Reserved Bank responsible for QE1,2&3? Say you are right that QE helped the market from 2009 to 2015. How is removing QE going to be helpful to the market going forward?
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As in any organisation or group, the ethos comes from the top. Governments empower or constrict executive agencies. No king or tzar can tell me what to do, but they can enchain me or liberate me to do my will. Removing QE will take money out of shares and put it into bonds, i imagine. I expect the FED to say that further increase in interest rates will be very slow to come, so as to avoid an excessive correction. It is, however, the nature of the market to swing too far one way and then the other. An excessive correctionn now will give rise to investment opportunity for those with cash.
+1 Reply
dumb ass
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So, give us your considered assessment, then
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