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David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
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  • WHEN KEYNES POLICIES AND POLITICIANS FAIL 0 comments
    Nov 21, 2011 7:21 PM | about stocks: SPY, IWM, QQQ, AAPL, IBM, XLK, LUK, MS, BAC, C, XLF, CAT, XLI, AA, XLB, BBY, SMT, XRT, XLP, IYR, IYT, IEF, TLT, BWX, HYG, UUP, FXE, GLD, GDX, SLV, JJC, JJG, DJP, USO, UGA, XLE, EZU, EEM, EWJ, EWG, EGPT, EWZ, RSX, EPI, FXI


     

    There isn't anything positive to say about market action Monday. The expected failure of the so-called congressional "Super Committee" has occurred. Rather than doing their job making even miniscule cuts in spending, both sides will look to make political hay from given the impending election cycle.

    Bernanke's Keynesian policies are also a failure. Zero interest rate policies were intended to stimulate consumption but they've only enriched the Fed's Primary Dealers and other oligarchs. Let's remember, Keynes was a proponent of consumption versus savings. To achieve it he presumed ZIRP and QE would do the trick but even in the Great Depression, of which Bernanke claims expertise, those policies failed. It didn't help that Moody's warned about a French downgrade and rumors remain of another U.S. downgrade given congressional failure. I wonder why reducing the deficit by $1 trillion over a 10 year period with the deficit now at $15 trillion is even meaningful to any rating agency? 

    READ MORE....

     
    Stocks: SPY, IWM, QQQ, AAPL, IBM, XLK, LUK, MS, BAC, C, XLF, CAT, XLI, AA, XLB, BBY, SMT, XRT, XLP, IYR, IYT, IEF, TLT, BWX, HYG, UUP, FXE, GLD, GDX, SLV, JJC, JJG, DJP, USO, UGA, XLE, EZU, EEM, EWJ, EWG, EGPT, EWZ, RSX, EPI, FXI
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