2013年11月25日星期一

Why is the DJIA still increasing?

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If you remember, it all started with TARP.


The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.

http://en.wikipedia.org/wiki/Troubled_As…


Then we had the bailouts and handouts, with the exclusion of Lehman Brothers.


Then we had QE1, then QE2, then QE3, then Operation Twist.


Quantitative Easing 1 (QE1, December 2008 to March 2010)

"On November 25, 2008, the Federal Reserve announced that it would purchase up to $600 billion in agency mortgage-backed securities (MBS) and agency debt. On December 1, Chairman Bernanke provided further details in a speech. On December 16, the program was formally launched by the FOMC. On March 18, 2009, the FOMC announced that the program would be expanded by an additional $750 billion in purchases of agency MBS and agency debt and $300 billion in purchases of Treasury securities.


Quantitative Easing 2 (QE2, November 2010 to June 2011 )

On November 3, 2010, the Fed announced that it would purchase $600 billion of longer dated treasuries, at a rate of $75 billion per month. That program, popularly known as "QE2", concluded in June 2011.


Operation Twist (2011)

The Federal Open Market Committee concluded its September 21, 2011 Meeting at about 2:15 p.m. EDT by announcing the implementation of Operation Twist. This is a plan to purchase $400 billion of bonds with maturities of 6 to 30 years and to sell bonds with maturities less than 3 years, thereby extending the average maturity of the Fed's own portfolio. Further, on June 20, 2012 the Federal Open Market Committee announced an extension to the Twist program by adding additionally $267 billion thereby extending it throughout 2012.

http://en.wikipedia.org/wiki/History_of_…


Now the Fed is injecting $85 billion every month into the system. Maybe that has something to do with the Dow making 41 new all-time highs this year?

Why is the DJIA still increasing?

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