I have an interesting conundrum to put forth for you guys. The news keeps just getting worse out of the United States, where it seems like the administration has epically mishandled the COVID-19 Crisis. And yet, Trump's approval ratings have never been higher. To wit:
The more deaths he finally admits to allowing to happen, the higher his approval rating goes. What's up with that?
I wonder if these results are happening because Trump is finally getting real with the people or is it just correlation with the Fed's QE injections?
After spending the first 3 weeks of March in freefall, the last 2 weeks in March have seen a huge sucker's rally and a steady buoying of the markets. As you can see below, total assets held on the Fed balance sheet increased from $5.254 trillion to $5.812 trillion from Wednesday to Wednesday last week.
The Fed seems to be pulling every trick in the book, and inventing some new ones along the way, in an attempt to delay what is most likely going to happen in the end - a crash of epic proportions the likes of which multiple generations have not ever seen and hopefully will not ever see again generations from now.
The Fed assuredly pumped more money into the markets this week. However, as with any debt, the more you use it, the less effective it gets. Deaths continue to pile up. In fact, the novel coronavirus continues to spread in an accelerated manner, with the US setting a new record on Friday with over 32,000 new confirmed infections. When the approval polls come in over the weekend, we'll see if this correlated trend continues.
If it does, we all have some serious questions to ask our American friends.