Stocks fall amid questions about Fed plan

While investors fret about the size of the announced program, they ignore the fact that quantitative easing has been ongoing since 2000. Have absolutely no doubt that second round of quantitative easing is coming. When market begin reflect its waning effects, have no doubt another round will be initiated.

The election rhetoric may talk of austerity and balanced budgets to win votes, but it largely ignores the economic reality at hand. The growing sovereign debt implosion and rising unemployment will quickly turn austerity into the need for visible “actions” based largely on more currency devaluation.

In time, the public will realize that the economic solutions provided by both political parties differ only in MOPE and presentation. The consequences of the solutions, which will do little to improve the employment picture, will always be the same. At some point, the public is certain to seek answers beyond the solution provide by a binary political structure.

Stocks slid Wednesday as concerns grew over whether the Federal Reserve's plans to buy Treasury bonds might be smaller and slower than anticipated.

Source: finance.yahoo.com