Stock slide: Markets like a "drug addict," hooked on Fed money, expert says

[steve2470]

http://www.cbsnews.com/8301-505268_162-57590401/stock-slide-markets-like-a-drug-addict-hooked-on-fed-money-expert-says/

(CBS News) Despite Federal Reserve chairman Ben Bernanke's cautious announcement that the Fed could start scaling back its economic stimulus program as the economy improved, fear has gripped the markets this week, sending stocks sliding.

Why the frightened response when things are beginning to improve? Some experts -- including Jon Hilsenrath, chief economic correspondent for The Wall Street Journal -- are saying investors have gotten hooked on the money the Fed has been pumping into the economy.

"The markets are kind of like a drug addict being told that he might not get his medication," Hilsenrath said on "CBS this Morning." "They're breaking out into cold sweats.

He added, "But I think that as people digest what's happening here, they might settle down. As you just said, the Fed said this is all -- pulling pack is all conditional on the economy continuing to improve. So stock market investors ought to be pricing in the possibility of more profits, better economic conditions in addition to less stimulus from the Fed."

[hootinholler]

1. What bullshit!

It's not that they are hooked on Fed money, they don't give a shit about where the money comes from. It's because the way the economy was stimulated there was only Fed money in the economy. Whilst the middle class is dwindling and the poor are starving, rather than getting stimulus into their hands, the Fed money went into some half baked trickle down tax breaks.

The fucking traders know this, but nobody will admit it.

You want to see the economy heat up? 10% across the board raise in SS benefits. It does several things. First it comes out of the SS trust fund and not the general budget. Second it gets the money in circulation because people will buy hamburger instead of cat food. Third it will ease the pain of retirees because maybe some will be able to afford burger or maybe medicine.