Stocks jump after Fed launches new round of ‘quantitative easing’

“Stocks spiked higher Thursday following the Federal Reserve launched a new round of quantitative easing,” JeeYeon Park reports for CNBC.

“Apple [AAPL $677.74, +$7.95 (+1.19%)] edged higher after the tech giant unveiled its iPhone 5 and some new iPods. And analysts seemed to be impressed with the new model—at least nine brokerages boosted their price targets on the company,” Park reports. “On the economic front, jobless claims climbed, hitting the highest in two months, according to the Labor Department. And the producer price index jumped in August, rising by the most in three years, as energy cost soared, according to the Labor Department. Wholesale prices matched estimates.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]

36 Comments

    1. Bernanke has valid economic reasons for the QE. On the other hand economists were scratching their heads trying to figure why Greenspan was raising rates in 2000 and lowering them in 2004. Greenspan has since been figured out to have been a total political whore.

    2. Hmmmm.

      What really needs to be done, an audit of the “federal reserve”.

      Why?
      Because they are the farthest thing from legal and open.
      PLUS…

      They have never been audited.

      How would ya like to own that PRIVATE company?
      Print money for pennies on the dollar, then lend it out and charge interest on it.

      What a scam the big banks have had for 99 years.

        1. Enjoy your trickle down. Working stiff’s voting for Romney? It defies all reason and logic. He has NEVER cared about working stiffs, and I doubt he is about to start..

        2. What makes you think you’ll have a choice soon? “Willing”?! Come on, when you are starving and living in a tent in the woods, you think you’ll have a choice? Oh, you won’t be paying the politicians but the chinese. They own us for christ sakes.

    1. It’s too late for that. US is already bankrupt. Romney can’t think his way out of a paper bag. All he knows how to do is agree with one side until he is persuaded to agree with the other side. Lather, rinse, repeat. This guy is even more devoid of real thoughts than “W” was.

    1. Agreed. Sad that the mainstream has people believing Paul is a quack. His fiscal policy is the most sound of them all. Give more rights back to the States and take away power from the Feds.

      Sadly I think a vote for Paul is a vote against Romney, therefore a vote for Obama.

      1. I agree. The Republican Party picked the wrong guy. They should have picked Ron Paul. Romney is an idiot and a liar.
        My choice to vote was
        1. Ron Paul
        2. Obama
        .
        ..
        1000. Romney.

        Guess I’m left with Obama again.

  1. Bad News… Stupid is as Stupid does.. While they print money and stocks go up, they merely kick the can down the road just a little longer before you have to start paying the bills. And the solutions will be painful for everyone, hopefully it will shrink government precipitously first when it happens

    1. What does shrinking government mean? Cut out the EPA? Cut medicare? Cut social security? Cut the military? Stop building roads? Fire teachers? Is this the big problem with our country? Or is it something else, like Corporations with too much power?

      1. I’m pretty sure firemen and police, “local city/government” jobs not the feds.

        Get rid of what? Oh, there are thousands of programs that needed to go away years ago and are no longer relevant but it’s easy to stand on you box and use EPA, Medicare, Social Security now isn’t it.

      1. We were bought and sold a long time ago. Toil for some scratch to buy trinkets and claim freedom, the whole time we are little better than slaves. Modern day serfs of the robber baron’s..

  2. Absent fiscal discipline, the Fed is left with just the monetary tools at its disposal. But with rates already near 0%, its impact (beyond the psychological will be minimal. QE III is being enacted because they’ve got nothing else.

    Cheap credit is how we got into this mess in the first place. Relying on more cheap credit will only advance the coming reckoning. In the meantime, it inflicts pain on those who rely on getting *something* back for their money, either for income to live on or to generate money that can be put to good works. The impact can be as devastating as a tax increase or a drop in salary.

  3. When a counterfeiter creates money out of thin air, he is a criminal. When the Fed creates money out of thin air, they are heros.

    No matter who is elected in November, we are doomed!

  4. The idea of money printing your way out of debt is ridiculous when the entitlement programmes are inflation linked. This does not help the us govt finances at all.

    Though you may get a pop in stocks, his target of policy, the real rally is going to be in commodities. Let’s see how popular he is when gasoline goes above $5 and food prices are at all time highs.

  5. I don’t think we will see $5/gal gas in this country until we have a significant increase in fuel economy. The average american will not be able to afford to drive to work in his 18MPG SUV

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