NEW YORK ( TheStreet) -- This afternoon we learn the status of QE3 and QE4, the latest two rounds of quantitative easing programs instituted by the Federal Reserve last September and December. QE3 is an open-ended program where the New York Federal Reserve Open Market trading desk purchases $40 billion of agency mortgage-backed securities each month. QE4 adds another $45 billion of longer-maturity Treasury notes and bonds each month.The stated intent of these purchases is to bring down long term interest rates, not to artificially prop up the stock market. Yields are higher, not lower and thus Fed policy has failed. Instead of bringing down interest rates, cheap money has been used to speculate in the stock market resulting in the ValuEngine valuation warning. The stock market bubble includes stock specific bubbles.
Fed Policy Hurts Main Street, Creates Bubble Stocks
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.