QE undermines the true forces of the markets that is for sure. When the markets are not left alone to allow true price discovery to take place, then it is manipulated and broken.
The U.S government money printing and injection of that money into the stock market is nothing short of stock market manipulation. The Fed in printing money and buying U.S treasuries , but I am sure that they are handling over to their friends on Wall Street lots of cash to manipulate the Nasdaq and S&P stocks driving the price up to make things look rosy and the myth of a economic recovery going while the true economy is crumbling.
Almost every market is broken not just the stock market, the commodities are manipulated as well (gold, silver, aluminum, copper). Just, look at the charts, it is not driven by real supply and demand rather than huge money (Goldman, JP Morgan) behind it, pushing prices up or down. It is just down right criminal and Fed and Wall Street is getting away with it.
by Das Brain
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Tags: Are Broken, Distorts, How Quantitative Easing, Markets, money printing, Reality
