RUSH: Joe in Queens, great to have you on the program, sir, nice to welcome you to the EIB Network.
CALLER: You made a statement earlier, and I hope I get it correct, that the Federal Reserve was pumping money into the stock market? Is that correct?
RUSH: Yes. The Federal Reserve is providing money for banks and others to buy stock, yes.
CALLER: Okay. First of all, are you sure of that information?
RUSH: Well, it's coming from one of there are multitudinous websites, these tips, these Wall Street guys, independent analysts and advisors and the group that I -- you know, everybody has these sites that they latch onto if they turn out to be true about the right number of things you listen to. I can't think of the name right off the top of my head, but this is what the conventional wisdom is. It's not just this website saying it. A bunch of others are saying it, as well as the fact that it's not your average, ordinary Joe buying stocks. It's the fed propping it up plus the people who are buying stocks are excited about the possibility that the Democrats are not going to be running Congress soon.
CALLER: Okay. Second of all, could you possibly give me the Web address so that I can check this out myself?
RUSH: Well, see if I can find it here. Are you saying that I'm making this up?
CALLER: Professor, just following the advice that you yourself once said when I first started listening to you 19 years ago --
RUSH: All right, here's the website. This is one of many but one is The Motley Fool.
RUSH: Is fed buying behind the stock rally. Are you ready?
RUSH: Www.fool.com/investing/general. And then 20100108, "Is Fed buying behind the stock rally?" APS. You go to Motley Fool and search, you'll find it.
CALLER: Okay. And one last thing. Is there a timeline approximately how long this has been going on?
CALLER: I'm sorry?
RUSH: Recent. September. September is normally a swoon for the stock market. Stock market traditionally loses value. The short sellers make out big time. The the people that traditionally count on a market decline in September are getting sandbagged here because the market's skyrocketing as you can see. It has the whole month. It's shocked everybody. People are trying to figure out, "Why, okay, why is this going on?"
CALLER: Okay --
RUSH: Here's the question. "Do we have the Federal Reserve to thank for the recent stock rally? The only logical answer is yes, according to TrimTabs, a research firm that tracks money flows in and out of the stock market." There's a line of reasoning here because stocks gain $6 trillion in aggregate market value in mid-March and it's really ratcheted up in September. And the average guys on the sideline here, Joe, the average guy is on the sideline, the average guy is staying out because the tradition is the market loses value in September. It's all about propping up Obama. Call Ben Bernanke and ask him, if you can get through.
RUSH: All right, here's another website. www.zerohedge.com: "The federal researcher intervened at 10:15 this morning to save stocks, is the subject." Well, they didn't go up but they were starting to crash today. Stocks were starting to go down, it was not looking good, somebody stepped in to stop it. Two years ago the Fed moved in to save Obama, get him elected, and now look what's happened as we approach another election here. I mean it is what it is, folks.
RUSH: Look, all you doubting Thomases out there, there's no doubt that the Fed is pumping money, no-cost money, they're printing money. What else are they going to do to cover all this debt? They are printing money and they're giving it away. The interest rates are practically zero. They're making it easy. So the short sellers are getting socked here because people are putting the money in the stock market. The average guy's not in. You know, it's not hard to understand what's going on out there at all.