From New York to the Brits and Chinese
For a positive trend,
By which they depend
On the Fed to continue to ease.
For the Index to keep hitting highs,
It's important to all of those guys
In the trading salons,
As they're dealing in bonds,
That the Fed Open Market Desk buys.
Investors have reason to sob less
And fear for their balance at Schwab less
If the Fed will agree
To stick with QE
'Til there's 6 1/2% jobless.
Around the world, stocks have surged to new highs following Federal Reserve Chairman Ben Bernanke's assurances of further monetary stimulus. On Wednesday, speaking at a conference organized by the National Bureau of Economic Research, Bernanke observed that "you can only conclude that highly accommodative monetary policy for the foreseeable future is what's needed in the US economy." These words gave a shot of comfort to global markets that, for the last two months, had been obsessed with the timing of eventual "tapering".
The resulting Wednesday afternoon rally in US equities carried through to Thursday morning in Frankfurt, Paris and London, before caroming back to New York for a second day. The S&P 500 has now reached a new record, and the Dow Jones Industrial Average may soon follow suit.
* * *
On a side note, I am happy to resume this little hobby of economic verses, following a two-month hiatus in which I found and adjusted to a demanding new job. Thanks to all those who enquired after my welfare during that time, and who expressed their desire for the return of Limericks Économiques. I hope they don't disappoint.
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