Some people still don’t get it. According to its press release earlier this week, the Fed is running $125B per day of QE ($75B in treasuries and $50B in MBS). That’s $625 billion per week, or $2.7 trillion per month, or $32.5 trillion per year. And furthermore, they have zero accountability. They can print whatever asset prices they want, and they evidently are. As one pundit put it early this week, it’s the “de facto nationalization” of capital markets. Or did you think this 20% surge off the lows happened organically? The S&P 500 will exit its bear market tomorrow, make new all-time highs by Easter, and hit 4,000 by the end of April. You will see lots of headlines abut how this reflects a sound economy, bargain hunting, etc. - those will all be a lie. It will be a simple reflection of the Fed’s liquidity cannon, nothing more, nothing less. When things get bad, we must discard capitalism and drown billionaires in manna from heaven - it’s the only way for capitalism to survive. We just have to hope people never give a second thought to debt levels or the value of the U.S. currency ever again. $SPY, SPDR S&P 500 / H1 I’ll see everyone at 5,000 (and likely a 50 forward GAAP earnings multiple) on the S&P 500 by Christmas. And that may prove conservative. After all, the worse the crisis, the higher assets must be pumped.via user alpha guy