Tuesday, May 28, 2013

Ben Bernanke’s Latest Casualty: The Pension Plan

from Zero Hedge

With every passing day, the destructive consequences of Ben Bernanke’s ruinous monetary policy on the broader economy become more and more apparent.
Nowhere is this more evident than the observation of a record high stock market – benefiting just a tiny portion of the population – correlating directly with the record number of Americans on food stamps – the wealth effect “trickle down”, or lack thereof, for everyone else (not to mention an economic growth rate four years after the “end of the recessionthat is the worst recovery in recorded history).
Less hyperbolically, this can be seen empirically in the anti-correlation between the US economy and corporate profits. Through his “central” scheming, Bernanke has turned the discounting paradigm on its face, leading to a world in which the market no longer “discounts” or anticipates any information or fundamentals, but merely cares about how big the next latest and greatest liquidity hit will be, and in which there is an inverse correlation between profitability and general economic well-being.
Continue Reading at ZeroHedge.com…
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