As I sit and watch the Dow now at -282 (12,287) as of 3:45p, a lightbulb went off... Yes.. it is so clear now..
It just dawned on me why you've had all these articles in the mainstream media suddenly and miraculously pessimistic (or realistic) about the US economy when they haven't displayed this form of honesty in over a year...
They didn't find religion, as the saying goes..
Its more insidious and agenda driven--
QE 2 (Quantitative Easing) is set to run out very soon with no more coming..
$50 billion/mo for 12 months ($600B) and its set to end in June.
And Dammit-- they WANT QE 3!
When you add QE 1, Wall St has been artificially pumped by close to $2 Trillion
To most corporations and Wall St on the whole, life without some form of QE to prop them up, is like expecting your vehicle to work without a car battery or gasoline. The free taxpayer $$ is the juice which allows them to pretend they're strong and solvent.
So what you're seeing... and will be seeing in the coming days and weeks is secret communication to the Fed from Wall St. via the media's suddenly negative spin of the economy, and they're basically saying this"
"Pssst... Heyy, you- Fed! Yeah, you!.. Heyy, we need more free cash over this way cause we're running out of steam you see, and if you don't continue pumping more free dough our way, the US economy's gonna get it & it ain't gonna look pretty"
But see, here's the thing.. and this is IMPORTANT-- American finance is So Evil and the Fed is so all-consuming & powerful that its Also very possible that Bernanke said to Wall St, "Hey, I Want to give you lots more free $$.. you're my brothers after all, but you need to make things look bad out there or I won't have the political cover needed for a third corporate bailout."
But see, here's the thing.. and this is IMPORTANT-- American finance is So Evil and the Fed is so all-consuming & powerful that its Also very possible that Bernanke said to Wall St, "Hey, I Want to give you lots more free $$.. you're my brothers after all, but you need to make things look bad out there or I won't have the political cover needed for a third corporate bailout."
So its hard to pinpoint just how Orchestrated this whole charade is... For example, when the Fed "leaks" information as to what its considering doing, such as QE or keeping interest rates dead-low, its not someone in the Fed secretly giving this info away behind Bernanke's back. Its a tool to allow corporations and investors to know of the Fed's intentions ahead of making it official so based on their response, the Fed sees if such decisions need to be modulated to suit those entities' best interests.
I told you it was Evil...
So to summarize, expect the market to have some real dramatic swings in the coming weeks, and a lot of gloomy forecasts and agenda-ridden news items on it until Wall St. gets its way or tanks the economy until it wins.
And another mystery of the Evil world of finance is solved...
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