Ad Majorem.....Wealth Builders
From Money News | by Dan Weill and Katherine Walter | February 20, 2013
David Sternman, a market analyst said that the 14,000 Dow Jones is not a reflection of the US Economy but of the huge liquidity being poured by the Fed Reserve Bank. When the Fed stops the QE4, there may be a stock slide and this could be sometime in June or July. So far the system has poured about $2 trillion into the economy.
Who knows, the high Dow Jones must be spiking the local stock market. When Dow tips or heads south, Phisix may slide too?
All the indicators point to ending the QE4 and there is not going to be QE5; the sopping up of liquidity of $2 trillion is a big order. Inflation is a big possibility.
So is a rating downgrade. So far rating agencies are being badmouthed (and even sued by US government) A downgrade could cost more interest and more interest servicing (current interest rate for US debt is 2.3%) And more interest could wreck US economy!
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