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“Something” Happened: What The GDP Report Means
By Jeff Harding, on January 28th, 2011
"That aside, what can we take away from GDP?
1. Most of the increase in GDP is the result of QE1 and QE2 monetary stimulus. Ultimately the Fed will “print” $2.2 trillion and pump it into the economy. That has one initial destination: Wall Street.
2. Most of the increase in the stock markets is a result of QE. The increase in company bottom lines is a result of efficiencies, but exporters have had the best returns.
3. A declining dollar has lifted exports and inhibited imports. The dollar has been on a slide since June 2010 which makes US exports cheaper and thus more attractive to foreign customers. The cause of this is QE."
Source:
“Something” Happened: What The GDP Report Means | The Daily Capitalist
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