THE BELOVED STOCK BUBBLE IS BACK ON WALL STREET... BUT AT A HORRIBLE PRICE...
$4 GAS! AND THE DOLLAR TRASHED...!
THE PROBLEM IS THAT THE ENTIRE MARKET IS A CATCH-22 NOW.
THE MASSIVE LIQUIDITY THAT THE FED INJECTED HAS HELPED... BUT HAS IT ONLY DELAYED YET AGAIN THE REALITY OF THIS SITUATION...
BERNANKE HAS PAINTED HIMSELF INTO A CORNER...AND THERE IS NO GOOD WAY OUT...
JUST TREADING WATER IS THE BEST CASE SCENARIO... BUT THAT IS NOT A FUTURE FOR THE MARKETS....LONGER TERM.
YET I SEE NOTHING ON THE HORIZON THAT COULD CHANGE THINGS... THIS MARKET SEEMS HERMETICALLY SEALED OFF FROM ANY AND ALL "REAL" INFLUENCES... JUST LOOK AT THE MASSIVE RALLY TODAY...ON A 28 YEAR LOW IN CONSUMER CONFIDENCE....
UNDER NORMAL CONDITIONS...AT LEAST A LITTLE REFLEXIVE SELLOFF WOULD HAVE BEEN EXPECTED... BUT THIS MARKET IS SO CONTROLLED NOW...THAT IT'S REFLEXES ARE COMPLETELY OVERRIDDEN BY THOSE WHO ARE MANAGING THE MARKET FOR CERTAIN "RESULTS"....
SO VERY LIKELY SOMETHING UNEXPECTED WILL HAVE TO DO THE JOB OF RESTORING GRIM REALITY TO THE STREET...
