Bernanke’s A Genius After All, See…

Here’s what around a trillion in QE over a year will buy you:

An 18% gain in the S&P.

S&P 500 Rose 18% Year to Year – Click to enlarge

A 1.8% gain in the volume of non defense factory orders.

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Non Defense Real Factory Orders Grew 1.8% Y/Y – Click to enlarge

Do you see the difference.

Stocks rose 10 times the increase in factory orders.

But hey! It’s all good. Business is lousy and there’s tons of excess labor.  But with QE and ZIRP CEOs can cut workers and suppress their pay to keep profits looking good  while using the free money from the Fed to buy all their executive crony stock option grants. A little more leverage is always good for the balance sheet you know. That’s how it’s supposed to work, right? After all, figuring out how to transfer wealth from the middle class to yourself is hard work.

And you wonder why Bernanke gets a cool quarter million for an after dinner speech.  He’s a genius after all. You take care of your friends and they take care of you. Sort of. After all, a quarter million here and there isn’t even an 18% tip for good service.