http://lewrockwell.com/bonner/bonner597.html
With the wind of the Fed at their backs, investors put out full sail. On Friday, they were skimming along nicely, riding high on a tide of "EZ" money. "Don't fight the Fed," said the analysts. The Fed is pumping... stocks are going to rise.
Of course, it's not that simple. Zimbabwe pumped. Stocks rose... for a while. But ultimately, it takes more than cheap money to make businesses more valuable. And too much cheap money is contagious; stocks become cheap too.
With the wind of the Fed at their backs, investors put out full sail. On Friday, they were skimming along nicely, riding high on a tide of "EZ" money. "Don't fight the Fed," said the analysts. The Fed is pumping... stocks are going to rise.
Of course, it's not that simple. Zimbabwe pumped. Stocks rose... for a while. But ultimately, it takes more than cheap money to make businesses more valuable. And too much cheap money is contagious; stocks become cheap too.