Pefspective. Market is falling apart, year 2007. Ben Bernanke decides tha QE
will solve the nations business problems and create a huge business rebound He starts QE. It fails, so he does another one and it fails. No rebound on main street. Only Wall Street and commodities. So when QE II fails he tries QE III. Now it too has failed. But though all of this the market rallies. Now that QEIII has failed people seem to think that QE!V is around the corner and that this time it will work and businesses will thrive and Main Street will prosper.
But history teaches us that this just ain't so. History also teaches us that there is a point when QE destroys the country that is practicing it. But today, expecting MORE QE from a Fed whose balance sheet is already screwed, the market rallies on the worst economic news of the past several years.
It is madness, but it will work until it doesn't. When is that Minski Moment going to happen? The person who calls that one correctly and invest his money in his call will become very wealthy. I think we are getting close. How close? Closer than one thinks. I say by mid July the QE looses it's Wall Street appeal and the market corrects big time.