"This effect is potentially important because stock values affect both consumption and investment decisions."
Yes Bernanke, you trick people into thinking their retirement account is growing and they spend more money. He just admitted that it's a facade to "affect" people's spending decisions! Unfortunately, the market will wipe out those fantom gains before the masses cab react.
Scarey manipulation of the American people. Inflating the market for the sole purpose of making consumers and investors feel better is flat out WRONG! It's another ponzi scheme.
They HOPE consumer spending picks up to justify the inflated shares. And they HOPE retail investors throw in more money to support the crazy stock prices. All this to suck more money out of Americans to support the massive government and it's growing debt.
Ben has the markets walking a very high tightrope with no safety net imo.