Articles on how the Fed 0% rates is fuelling the stock market rally and not a real recovery

Economics Economics Questions
1

So I was posting a coment on a stupid liberal vs neocon (Fox) video. Its a liberal mocking Fox. Now, Fox claims are ridiculous, but the liberal guy claims are stupid as well. This is the video: http://www.youtube.com/watch?v=uxTyrcPP8kk

So because of my coment claiming both point of views were stupid and giving a quick economical reason why (YT coments are limited in size, and yes I used some populism because I think that its what works best at YT), I got this personal message asking me for articles backing up my point for some kind of featured story or something. So what articles would you recomend for this guy? He seems to have no idea about the austrian position:

This is about your comments on the “Obama Market Surge as Fox News Reports It?” video by LiberalViewer.

You said something interesting that I hadn’t heard about before:

“The reality is that Fox and you lie. The stock rally is a bubble fuelled by the Fed 0% rates and its not improving the real economy, only helping the big banks”

It’s a pretty harsh theory. If it’s true, it could mean that the bubble will burst some time in the near future, and USA is headed for another depression.

Do you have some numbers to back this up? Some articles? Maybe even some research?

I’m doing a feature story on the new american financial policies under the Obama administration in a few weeks, and this is an angle I have yet to approach. I’ll do my own research, of course, but if you could point me in the right direction I’d much appreciate it.

Thanks

Hugo

2

It appears you need to introduced the Austrian theory of the business cycle. The theory involves several concepts, and I’m not aware of a concise article that introduces all of the. When learning the theory myself, I found this article helpful. Be sure to follow the links within this article to several other related articles.

Also, Rothbard’s book on the great depression makes the important point that money entering the loan market, cannot be isolated and prevented from in the long run entering the stock market.

Further, Rothbard’s book on the mystery of banking is useful in demonstrating the mechanism by which credit is expanded. He emphasizes open market sales and purchases are much more important than the discount rate. (You may need to correct your argument to some extent here).

I would suggesting checking the media page for a seminar from the mises university on business cycle theory.