The difference between the Fed and Mr. Bumble is that when Wall Street comes around with its cup asking, “Please, sir, I want some more,” the Fed whips out a ladle of trillion-dollar gruel. To wit:
“When you saw the selloff, there were moments of madness in stocks,” said Bryan Turley, managing director at MLV & Co. in New York. “I looked at a couple of stocks — you saw some dumping 20 percent and bouncing right back again — I mean, that’s bubble stuff.”
Turley was referring to the selloff in equities this month that sent the major indexes nose-diving, the S&P by as much as 7.4 percent from its record high on Sept. 18.
As volatility soared during the selloff, many investors saw it as Wall Street once again sending a message to DC: We need help or we can go belly-up before the midterm elections.
The market reaction, some contend, prompted St. Louis Federal Reserve Bank President James Bullard to call for a pullback on the taper.
Easing today, easing tomorrow, easing forever!