Yesterday's odd little "technical spasm" in the markets is over...
The liquidity will continue to flow into paper assets apace...the central banks will not even have to make a statement about yesterday's action.
None of the underlying problems will be addressed because they don't need to be address...
Yes, the dollar will continue weaker...WE ARE IN A WEAK DOLLAR GLOBAL ECONOMY NOW.
Yes, hard assets like gold and oil will creep higher...based MOSTLY on the weak dollar but also on the "headline" version of expansion in Asia and India.
Yes, the US consumer will continue weakening...mainly because the home equity ATM is no longer working...and real estate is glutting the markets.
Yes, foreigners will continue supporting the US Bond markets...and indirectly financing the various "wars" that Washington is spreading across the globe.
IN SHORT, NOTHING HAS CHANGED... PARTY ON! THE "CORRECTION" WAS SO FAST THAT THERE WAS NOT EVEN THE EXPECTED HIGH VOLUME YESTERDAY!
GO FIGURE ON THAT!
WHAT SEEMS TO HAVE HAPPEN WAS SIMPLY A QUICK "BOOKKEEPING ADJUSTMENT" IN ASSET PRICES BY THE MARKET MASTERS...
AN ADJUSTMENT THAT WAS ALMOST DEVOID OF ANY REAL SELLING PRESSURE...!
HENCE, THE BIG "MYSTERY DROP" THAT SEEMED "LIKE A MISTAKE" ABOUT 3PM YESTERDAY ON WALL STREET!! REMEMBER...?
HOW FAKE DOES IT GET!
ANYWAY, THIS MARKET IS BACK IN MOONSHOT MODE...
PARTY ON...THE CENTRAL BANKS ARE STILL IN CONTROL...AND THEY WILL BE FINANCING OUR ASSET BUBBLES BECAUSE THAT'S REALLY ALL THEY CAN DO!
