Dooming Real Growth

After all is said and done, asset speculation is the only driver in fostering positive market perceptions about this recovery. The Fed, having to find some means to stem deflationary pressures, chose to provide massive liquidity to hopefully inflate asset prices which in turn would imitate real growth. While asset classes such as stocks and commodity prices have recovered, higher prices do not in themselves create enough impetus for job creation. Like Greenspan before him, Bernanke thinks whatever it takes to inflate stocks prices is the ultimate answer to economic recovery and expansion. It must be a part of the limitations of the job and the preoccupation by the Fed to create a policy which appears to be striking a balance fostering growth and fighting inflation, but is really dooming real growth and inflating assets. If there is no real job growth, nothing gets fixed and higher asset prices end up being lousy trades.