

Stocks Might Be 50% Lower Without Fed - adventureful
http://www.cnbc.com/id/48165921

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bediger4000
I'm no stock market or finance expert, but this seems a bit simplistic. CNBC
just subtracted any stock price index gain from 24 hours before a Fed
announcement. I don't think they added back in any price index loss from 24
hours after. Which seems to me to make the "price indexes lower" conclusion
sort of a necessity of the arithmetic.

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washedup
this makes perfect sense. the Fed, over the last decade, has run a policy of
credit expansion, followed by liquidity expansion since 2007. this is always
priced in as a positive movement in equities, but many people believe that
this is an illusion, and that "inflating" the preceived value of a stock has
nothing to say about the true value.

