Earlier this week, the Your World show discussed a jobs report showing that the economy created 148,000 jobs, below expectations. The Dow Jones rose 75.46 on hopes the Fed will continue to stimulate the economy via QE or quantitative easing. Host Neil Cavuto “asked” his guest, “The markets are rejoicing that the nicotine’s going to keep coming, right?”
The guest, independent trader Frank Roache, laughed in agreement. He doubled down on the metaphor by saying, “Neil, America has a drug problem. The street name for the drug is QE. The addicts are stock traders and the pushers are the Federal Reserve, and it’s a real problem, and you can see every time we get a weak data point like we had today on non-farm payrolls, equities just rallied, metals rallied, buy bonds, sell dollars, it’s the same trade over and over again. It’s just a bunch of addicts hooked on Federal Reserve activity.”
Cavuto explained that “QE” stands for “buying up treasury notes, mortgage securities, anything the government can get its hot little hands on to keep rates low.”
So stimulating the economy and keeping rates low is equivalent to nicotine and having a drug problem? Only on Fox News!