It is quite pathetic that along with their supposed dual mandates of price stability and employment, the new era Federal Reserve believes manipulating the stock market upward is their new responsibility. Rah rah free markets. Appaloosa’s David Tepper, now infamous for his QE2 rally call, says QE3 will come if the market falls far enough. There are so many things wrong with this sort of actions and bowing to Wall Street, it begs about 10 posts, so I won’t bother.
Of course being a smart guy, he can see as I have pointed out, the QE’s are punishing Main Street at the expense of Wall Street.
The head of Appaloosa Management and source of the “Tepper Rally” that generated a huge run in the market last September said in an email to CNBC that stocks would have to fall considerably more before the Fed would start another round of quantitative easing, or QE.
This is a guest post written by Trader Mark who runs the blog Fund My Mutual Fund.
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