Wall Street throughly nutty reaction to the FED statement yesterday was...
Well, SO typical of the kind of thinking you would expect from the hypsters and hucksters on The Street.
Essentially the FED said that they would continue raising rates "some" and that inflation from energy prices was a threat...
Of couse the reaction was a wild rally on the theory that the rates hikes were slowing... But consider:
IF THE STREET REALLY WANTED THE FED TO TAKE PAUSE...THEY SHOULD HAVE SOLD OFF THE MARKET BY 200 POINTS ON THE DOW!
NOW THAT! THAT, WOULD GET THE FEDS ATTENTION...!
As long as the Street remains coiled and ready to spring into rally mode...with asset inflation all round...the FED will know "it ain't there yet."
AND CLEARLY, WITH BUBBLES IN STOCKS, BONDS, REAL ESTATE, OIL, GOLD, ETC, ETC...THE FED HAS A LONG LONG WAY TO GO BEFORE IT IS NO LONGER "ACCOMEDATIVE."
RATES WILL CONTINUE GOING UP AFTER JANUARY NOW...BECAUSE THE MASSIVE RALLY THAT WOULD ACCOMPANY ANY "STOPPING" OF RATE HIKES BY BERNANKE...WOULD BE HUGELY INFLATIONARY...
AND THE INFLATIONARY BUBBLES IN REAL ESTATE AND IN STOCKS IS ONLY NOW SHOWING SIGNS OF COMING BACK TO REALITY...
SORRY WALL STREET, YOU GOOFED AGAIN. ...YOU'VE GOTTA GET OUT OF "BUBBLE MODE" BEFORE GREENSPAN WILL BE ABLE TO QUIT "BACKING OUT OF" THE BUBBLES GALORE SALOON...THAT HE CREATED AFTER THE INTERNET COLLAPSE OF 2000!
