This week saw not only the end of QE but an unending parade of told-you-so talking-head willing to proclaim not only QE's success (unemployment ~6%, stocks at record highs, corporate profits at record highs) but to scoff at the naysayers warnings that post-QE stocks will slide since 'the whole rally has been driven by central bank liquidity' because "see, stocks are ripping higher post-FOMC."
Obviously they fail to see the link between extraordinarily low rates (enabling cheap-funded financial engineering), printed money (repressing investors into buying stocks), and the fact that stocks are surged after another central bank - the BoJ - unleashed another round of even bigger insanity.
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To those that suggest QE was a victory, we have words and pictures...
If it was so successful, why did they stop?
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and does this look like the chart of a successful monetary policy action?
Chart: Bloomberg
