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Richard W. Crews

definition of "productivity" ; we did it without you.


The number one reason stocks are rising is Federal Reserve action. That is QE, aka expanding their balance sheet by purchasing Treasury Notes in Open Market Operations, aka money printing.

There is a long standing high correlation between Fed actions and stocks. The simple reason is they buy Treasuries and now mortgage backed securities from institutions holding large quantities of financial securities. The moment they get the Fed cash they must buy other securities. They are not taking the $100+- billion a month and spending it on stuff. They are buying other financial assets and stocks are always part of that.

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