The article draws few actionable conclusions, but does make it sound like the Federal Reserve is running out of tricks, as is the US government. With government spending cuts needed to manage a national debt that is no longer viewed as acceptable, economic growth tied to federal stimulus is unlikely to materialize. So why do stocks regularly bounce 5% in a day these days? Large hedge funds and high frequency programmatic trading, perhaps. Prices certainly doesn't seem to reflect the DCF of future dividends - ha!
- Adam Wible