Think Mcfly, THINK!
Forget the rhetoric, forget what Cramer says – or any of the other idiots on what used to be accurately called “the idiot box.” Just look at this one, simple chart (thanks Doug Short) and tell me – why on earth would the Fed step in and take emergency action when the market is at a multi-year high?
Have they EVER done this before? EVER? Has ANY Central Bank EVER taken emergency liquidity measures when their stock market was at or near their all-time highs? And look at the interest rates (the red line) – there’s nowhere to go folks – not unless the Fed is going to start PAYING US to borrow money. In which case – sign me up for $10Bn…
This is the point that was made this week on the cover of Stock World Weekly, and my comments in “The Week Ahead” section were:
How the Hell can we expect the Fed (or the ECB) to “step in” to “save” the market when the S&P is up 110% off it’s 2009 lows (666) and only 10% below it’s all-time high of 1,561.
Is it the Fed’s mandate to create unsustainable bubbles–to force a misallocation of financial resources into stocks and, even worse for our country, out of bonds? Already this week we saw TLT drop from $132 to $123 (6.8%) and not one, not two – but 3 anemic
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