They have succeeded in creating a new bubbles, in the stock market & oil.
The price of oil is directly related to the weakness of our dollar. It is only going to get weaker.
The bursting of these bubbles (oil & stock market) will be even more painful and harmful to the economy than the bursting of the housing bubble was.
I think we may be nearing a top, in both oil and the DOW. This QE2 driven growth is totally unsustainable.
High gas prices are taking a huge bite out of an already weak consumer. The price of put options in speculative stocks (with p/e's over 40) has drastically increased this week. How do I know? Because the ones I was going to buy are now way to expensive for me to afford. Yet the overall market is hitting new post 2008 highs? Does this make any sense?
Actually, it does. Wall Street is getting ready to make money on the down side, after making enough on the upside.
Nothing has to do with value any more. What a shell game.
http://www.marketwatch.com/story/2008-crash-deja-vu-well-relive-it-and-soon-2011-04-26
The market makers get richer and richer, the US consumer gets poorer and poorer. The savings rate is destoyed by price fixing of the price of money itself. Savers are punished, speculators rewarded, and incentives are skewed to reward the bad guys.
This is what Government involvement does. I guess it is called "crony" capitalism, I prefer to call it "phony" capitalism.
What a joke.
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