Mandated Markets
The recent research from the New York Fed indicating the close correlation between the Federal Reserve’s interest rate decisions and the movement of equity markets just prior to its announcements has added fuel to the flickering flames of suspicion that the Fed’s actions are designed to support stockmarkets and the super-rich who rely on them, rather than the wider economy.
It's just as possible, though, that market participants can now force anyone they want to kowtow to their demands. It seems that politicians and central bankers are no longer in charge of the economy, but that the market – at least as defined by the demented lore of economic orthodoxy – rules by dint of habit. Which is not OK, not OK at all.
