Global stocks traded higher, as did the dollar against the euro, Thursday after the Federal Reserve's surprise announcement it would buy $300 billion in US Treasurys in order to help the ailing economy.
But experts tell CNBC they have concerns over the Fed's latest move and that the current national balance sheet is a disaster.
The recent rise in the stock price is just due to unwarranted hype. The stock market falls will continue since the US economy is not going to improve anytime soon. More companies will go bankrupt as their profits and sources of finance dry up. There is no fundamental reason why things should magically get better.
Also note that the price of gold remains high meaning hedging vs a weak US dollar and a weak US economy remains strong.
[Posted at the SpookyWeather blog, March 20th, 2009.]