Quote:
Originally Posted by Guest
By almost every measure the stimulus package, which I assume you are referring to, has been an abysmal failure. And, for all practical purposes, the Fed Fund rate HAS been at zero for the last several years, forcing investors to seek higher returns in the stock market; hence, the increase in the market indices despite an overall decrease in corporate earnings due to a Obama's sluggish economy.
I also think that you may be confusing fiscal policy with monetary policy. Obama has tried to take credit for the results of the Fed's monetary policy on the stock market...policy and action that he had/has NO control over.
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Again I don't disagree that the low interest rate set by the fed drives savers to the stock market, it did. But without the massive amount of deficiet spending I don't believe stocks would be anywhere the levels they are today. The effectiveness of the stimulus can be argued but it did pump a tremendous amount of capital into the economy that contributed greatly to stock market roaring back. Along with interest rates consumer demand must be there and it would not have been without borrowed money. IMO