Did I get your attention? Good, because I lied. After listening to Bernanke today it is clear that there will be no change in policy, as long as he is Chairman.
Governments must fund their deficit spending and TBTF banks must not lose money. These are the primary tenets of the “Bernanke Policy”.
In order to accomplish that the Fed must own the entire non liquid mortgage market. That means all new mortgages and all old mortgage paper. At 100 cents on the dollar. And when I say all, I mean all. But forget about that old news for a second.
The endless printing of money is something that the general public knows nothing of. You speak about it and people’s eyes glaze over. Its like talking about currencies to the public.
I was once taping an episode of Bulls & Bears and someone started taking about the Dollar vs. some other currency and its implications. The taping had to stop because the topic is a “channel changer”. Realize that stopping a taping was hardly ever done unless there was a technical difficulty or a real fuck up.
Like the time I used the exclamatory, “Jesus Christ” when describing some market action. That was about the biggest no-no. You can only talk about the man, not use his name in any other way. One of the Commandments I was told.
So, the market indices are pushing new highs, Europe is falling apart again, China is off the gas pedal and we have an economy that live off the lies of government releases. Though markets sold off quickly with the latest Italy scare, and there is widespread technical Distribution, the pump will not end. Not now and not until there is a new Chairman of the Fed or a new President of the United States.
This economy is set up entirely for the investor class. As Ben said, “the rich get richer, bitch. You don’t like it, go screw”