RUSH: Rob in Douglas, Massachusetts. Welcome to the Rush Limbaugh program. Nice to have you here.
CALLER: Greetings, Rush, from the conservative side of Massachusetts.
RUSH: Wonderful to have you, sir. Thank you.
CALLER: I’ve been a student of yours for approaching 20 years now, and I was wondering if you’d give me your opinion on a thought that I’ve been having lately, and that is: Right now the US Treasury is dumping a lot of money into stocks, keeping the stock market afloat. You talked about it several times.
CALLER: What is your opinion on this thought? Do you think it’s possible that after the election, when there’s a landslide, that all of a sudden the Treasury will stop pumping as much money into the stock market and the stock market would go down and Obama would then say that, you know, the stocks — business — are a little bit nervous?
RUSH: Look, it’s entirely possible. I know what you’re thinking. The Fed is pumping money to corporations and individuals to buy stock, and it’s artificially keeping the stock market up. People are going, ‘What’s going on with the market? How could they possibly be?’ This is a version of stimulus, is what the Fed is saying. Now, whether they stop it after the election for political reasons or otherwise, it can’t go on. I mean, they’ve gotta stop it at some point. Now, the root of his question is: Is this being done to prop up Democrats’ chances in this election, to make the economy look stable and make Wall Street sing and shine so as to convey that the economy at large is actually okay, to create the illusion that everything’s cool?
But then after the election’s over and the Republicans win everything, will they pull back and make it look like, ‘Oh, my God, the economy is going to hell because the Republicans have won’? Anything like that’s possible. However, there’s a mitigating circumstance, Rob, and that is that in many instances the market is going to be populated by people happy that Congress has changed hands. But it is true what’s been happening with the stock market is a bubble. It’s gotta burst at some point. This is a bit artificial. This is the Fed pumping liquidity in circuitous routes into the stock market. It’s gotta give at some point, just like all these other stimulus plans have to eventually give up. Whether or not this is being done purposely to redound negatively to the Republicans after the election? Maybe. We’ll have to wait and see. Don’t intend, however, to let that happen. Glad you called.