You see – since the recent “jawboning” from the Fed (with suggestion that they might consider “tapering” their current QE program) the markets have perked up and taken notice.
Off the top of your head you’d imagine – this is a good thing! Less QE – suggesting a growing economy with no need for additional stimulus….and if the Fed is considering tapering off QE – that must be indication that things are improving etc….
Wall street knows (without question) that once the “kool-aid” is turned off – its lights out. If Ben where to stop buying all the new bond paper ( can you believe like 80 % of it! ) yields would literally skyrocket overnight ( in order to entice foreign bond buyers – the rate of interest paid on those bonds must move higher) and BOOM – Greece in a handbag.
NOW – with the wonderful contribution from your local media – YOU WILL WANT TO HEAR BAD NEWS ABOUT THE ECONOMY/ JOB GROWTH ETC – SO YOU CAN GO BACK TO SLEEP KNOWING THAT QE WILL NEVER END.
The “spin” will now be reversed…. to ensure that the general public will once again “support” more money printing.
Bad news will now be perceived as good news – cuz you know…….the Fed’s got your back.