Current Government Spending Not Creating Enough Growth
Biderman on growth, the Bernanke put and the markets.
The Bernanke put is keeping stocks priced levitated these days, at least in my opinion. Specifically, the Bernanke put exists because the stock market believes that the Federal Reserve can and will do “something” that saves the day, whatever saving the day is. Ultimately that belief falls into the same category as a superstition, like the evil eye or the tooth fairy. The reality is that the Fed cannot do anything to solve the fundamental flaw at the heart of the US economy.