The headlines are screaming at the top of every financial media outlet tonight: The Dow Closes Above 12,000 For the First Time in Two Years!
What’s going on here? Is the recovery well and truly underway? And, if it is, why is the Fed dropping hints again that “QE3 may get discussed” at future Fed meetings, as Kansas City Fed President Thomas Hoenig said on Feb 1st?
Given the raft of good economic news lately, one might be forgiven for wondering what the Fed has in mind here. If everything is so economically rosy, why are they already dropping trial balloons about more Quantitative Easing? What are they seeing that we are not seeing, that justifies more than $100 billion in thin air money each month, and why won’t they just tell us what it is?
Here’s how ChrisMartenson.com member dbworld put it earlier today: