by: Trent Derr - Morning in America
I swore I heard that right. Did the President say this is our “Sputter and Nicked Up” moment? Was this the first time that he decided to finally come clean with the American people? I thought to myself, well at least he was being honest in his State of the Union speech. He’s finally breaking it to everyone that after his first two years in office he’s set the economy up for another dip… and a bad one. Yes I know that the stock market has been going up for the last couple months and other economic indicators have had minor upticks. This temporary uptick has been due to the FED pumping liquidity into the financial markets at a level nearly matching 90% of our current GDP.
But Obama has decided to come clean. He’s telling us when the FED’s stimulus runs out again, the economy is going to sputter, fall back into recession, and we’re all going to get nicked up. The latest stimulus by the FED is known as QE2 (Quantitative Easing 2). Why is it called QE2? Because QE1 didn’t work. Yes Obama was able to leverage QE1 to trigger a rebound in the stock market but that happens when the FED pours cash into the financial market. The impact of Quantitative Easing 1 stopped working in late April 2010, and the stock market swooned. continued...
Comments