Stocks Soar As Fed Makes Money Free


Now that money is free (the government raises money for free and passes it along by sopping up debt at any price), the market thinks it’s time to party.

After a 360 point Dow rally, 9,000 is back within site. Two more days like this, and we’d be back within five digits. The big winners: Financials, especially the investment banks like Goldman (GS) +15% and Morgan Stanley (MS) +18%.

The retailers also turned in a strong day after not-terrible results from Best Buy (BBY). Perhaps this end-of-year rally will create just a smidgen of wealth effect to salvage the holidays. Perhaps.