Interesting correlation

Quantitative easing is the amount of money that the Fed “creates” out of thin air and puts into the economy. Bernanke said that he will stop QE by the end of this year. It will be interesting to see what happens to the market if the economy continues to flat line. This is not an endictment because there are too many moving parts and I honestly don’t know enough to speak on it as an SME. But… it is definitely interesting that there is such a high correlation between these two statistics.

SPX%20Monetization%20Corr

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3 Responses to “Interesting correlation”

  1. urstupidnourstupid Says:

    I have no idea what it means. But I disagree that the economy is flatlining. Employment is definitely flatlining…but almost every other indicator is looking good. Employment is always the last to rebound.

  2. urstupidnourstupid Says:

    oh. i must have missed all those other indicators. my bad.

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