Federal Reserve Controls Wall Street?

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I’m no expert on economics, but I have to think something is wrong when we see fluctuations in the stock market tied to statements of Ben Bernanke, the Chairman of the Federal Reserve System, which prints American money at will.

Stocks React Like Junkies As Bernanke Yanks Away Low Rates

All the traders understood that sometime next year the Fed’s buying of bonds to keep interest rates low was going to start to come to an end. As you probably know, last month saw the Dow Jones Industrial Average go over 15,000. Record setting numbers have been the story of the last month.

Then Mr. Bernanke opened his mouth trying to clarify the Fed’s plans and failed. He sent the markets into a sharp downturn, as traders took his words as a reason to sell in a big way. They feared Bernanke’s talk about slimming down the quantitative easing (buying bonds to lower interest rates and printing money).

That brings me to my layman’s concerns. If the organization that can print money and buy bonds at such a great rate can cause the stock markets to stop growing and begin contracting by the words of a chairman, there are reasons to be concerned.

Continue Reading at YoungPatriots.com

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