Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
This week have been an eventful week. To recap, Ben Bernanke the Fed chairman announced that there will be a monthly purchase of mortgage backed securities at a pace of $40 billion per month.
The amazing thing was when asked what was the target they have in mind, they say they don’t have a target!
I am not an economist and I have no clue why the purchase of these securities. Perhaps some of you guys can explain to me. However, the flux of money into the market this time round will be as crazy.
