Friday, March 20, 2009

Inflation Inspired Stock Market Boom?

The money the Fed is pumping into the system is quietly creating a boom in the stock market.

It will be sometime before the general public realizes the up move, but the S&P 500 is already up 20% over its March 6th lows. The boom will continue for some time, but it is not a healthy boom. It is inspired not by increased productivity, but by the Fed money printing, which means it's eventually going to get real ugly on the inflation front.

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