Just like in the past two years, the stock market had decided that the strong fourth quarter of business should translate into a bone-fide economic recovery. But like in the past two years, it is just not so. But that hasn’t stopped the Wall Street Brain Trust from preventing even a 1% pullback in the major indices during these past months. In fact, it has been one of the best stock market performances in history.
Many on Wall Street and in the Media will tell you the same standard stuff you hear all the time. You know, the stuff that sounds analytical and important. But it is all total bullshit. Crap, I tell ya. The market is up solely on FED and ECB stimulus. And lately, most everyone knows the truth, yet they buy with a nod and a wink. The fact is that markets around the world are dependent on the free money regime and without it markets would be at least 20% lower.
Over the past few days there has been rumbling that more stimulus will have to wait. I think that is a lie. History and statistics prove that Chairman Bernanke is here to shower the economy with cash to prevent the deflation that caused the Great Depression. This is his purpose in life and it will not stop as long as he is Chairman. But the market’s rally has become “otherworldly” and way too speculative. That creates undue expectations that cannot be met, and if that happens, the wheels could come off the bus, again. Certainly few want that.
My take is that there will certainly be more QE. But in order to justify it, the markets must “discount” an economic slowdown by dropping a thousand or so Dow points or a hundred or so SPX points. In order to get more QE, Bernanke must dampen the speculation that there will be more QE. Make sense?
My long-standing top to this market phase has been the April 16 deadline of 401k/IRA contribution for 2011 tax deductibility. If yesterday was beginning of a true corrective process then I’ve come up a week and a half short.
But not to worry as there will be Fed-Heads out in force over the next few days promising to do “whatever it takes” (buying shit in the open marketplace) to get the stock market and banks out of any negative environment. They know that near-term stock market performance is the only thing that matters to corporations and the investor class.
They say that no man or entity is bigger than the markets. Bullshit.
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The only unprecedented move has been in equities, which are now essentially flat for the last 3 weeks. I’m assuming most people expect this year to play out like the last two and they are trying to get ahead of the herd and front run any down move. Look at gold and oil. Neither one has said “QE3” for two months now.
Any ideas where the money is going, other than cash?
iPads, of course…
Yep. Commodity speculator blood is required at the alter of Fed.
Oil bulls, step up and take a number.
only a 100 SP points? seems kind of light for an intervention doesnt it?
I was thinking more like 1100 on the SP or is that too outrageous?
I got a new date!! 4/23/12!
http://www.youtube.com/watch?v=N5I12p-Jx3s&feature=player_embedded
lock up your fridges and put up your firewalls!
Stop talking and go all in on the short side. The daily diatribes are just too much when there’s no skin in the game. The funniest part is that those on Wall Street don’t realize that they’re playing with the guy across the street money. Main street America doesn’t care.
‘They say that no man or entity is bigger than the markets. Bullshit.’
It’s not BS, they may be able to manipulate natural market forces for a period ( a long period), but eventually the market will have its say.
I give Benny boy 3 years before currency crises shuts it all down.