Wall Street Still Addicted to Fed Stimulus Like a “Drug” Says Blodget
Blame it on the Fed. Or investors and their utter dependence on the Fed's stimulus program. Or Congress, Americans love to blame Congress for all sorts of things -- though they're on recess and not even in Washington anymore. Whoever you blame, global markets had a broad selloff overnight and the S&P 500 is limping along today.
Rick Newman, columnist for Yahoo! Finance, is still surprised by the degree to which Wall Street is focused on the Fed. "The tiny details of Fed policy and these utterances from people are driving markets these days."
The Daily Ticker's Henry Blodget adds: "It's also astonishing to me how shameless Wall Street is in just whining about the idea the Fed might stop or slow the heroin injection... we are still addicted to a drug here."
Related: Should Wall Street Fear A "Comptroller" Spitzer?
But it looks like the high may be wearing off. Blackstone vice chair Byron Wien has a new note out sounding a note of caution. His monthly investment commentary is called: "Worried About the Second Half." Uh-oh.
So what is the average investor to do?
"The thing for ordinary people to look for is when we start talking about the normal parts of the economy driving the market, earnings, deals, things like this rather than things happening in Washington," says Newman. "I think it's always a bad sign when events in Washington are driving the stock market."
Watch the video above to see why Blodget says corporate America is to blame for the sluggish recovery.
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