According to my reckoning, between the close of business Thursday and Tuesday, the Fed’s extra $352 billion in liquidity enhancing measures bought a 1.3% increase in the S&P500. Since we need a 19.4% rally to regain October’s Suckers’ High at 1576, we might only need another $4.8 trillion in new measures to do the trick! Neatly, that would equate to the Fed buying out the outstanding total of Agency/GSE-backed mortgage pools, with enough room to nationalize Freddie and Fannie at current market value, into the bargain. Over to you Ben...
We’ve only just begun
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