WITH THIS BUYING FRENZY BY FED SHILLS... A RATE CUT IS NOW UNNECESSARY...
THOSE WHO ARE BUYING ON THE RATE CUT TALK COULD BE IN SOME TROUBLE NEXT MONTH.
BUT THE POINT IS THAT THE DISCOUNT WINDOW IS OPEN...AND THE STOCK BUBBLE IS BEING RE-FLATED BY THE NEW LIQUIDITY POURING INTO WALL STREET...
BERNANKE KNOWS IT'S "BUBBLE OR NOTHING" FOR THE US ECONOMY...
SO THE BUBBLE IS BACK...AT LEAST ON DAZE WHEN THE CREDIT COLLAPSE IS NOT IN THE NEWS... WHAT THE CREDIT MARKETS PROVIDED LAST MONTH...THE FED DISCOUNT WINDOW WILL PROVIDE FOR THE DURATION OF THE US BUBBLE ECONOMY...
MY HUNCH IS THAT THE DOW COULD BE AT RECORD HIGHS BY THE NEXT FED MEETING...AND THAT WOULD GET BERNANKE OFF THE HOOK ON PROVIDING A RATE CUT...WHICH EVERYONE KNOWS HE CAN'T AFFORD TO DO ANYWAY...
TODAYS IMPRESSIVE PLUNGE PROTECTION SHOWS THAT FRESH LIQUIDITY FROM THE DISCOUNT WINDOW CAN...AND PROBABLY WILL...BRING BACK THE STOCK BUBBLE.
THE REAL ESTATE BUBBLE WILL NOT COME BACK...BUT THAT'S JUST THE TRADE OFF THE FED HAS DECIDED TO MAKE...
DOW 15,000 BY SEPTEMBER 18TH....IS VERY VERY POSSIBLE...IF THE FLOOD GATES OF MONEY STAY OPEN...FOR STOCK BUYERS...
AND THE CREDIT PROBLEMS CAN BE PUSHED TO THE BACK PAGES...
OF COURSE THE UNDERLYING PONZI SCHEME IS STILL IN PLACE...SO THE FED IS REALLY JUST DEVALUING TO THE DOLLAR...AND PUSHING UP INFLATION IN RETURN FOR "PEACE AND QUITE" ON WALL STREET TILL THE NEXT CRISIS ERUPTS...
