THE HYPER-LIQUIDITY THAT WAS "MAINLINED" INTO THE VEINS OF THE LARGE INVESTMENT BANKS HAS DONE WHAT BERNANKE EXPECTED....
IT HAS JUICED THE STOCK MARKET BUBBLE ONE MORE TIME... BUT IT HAS NOT CURED ANY OF THE UNDERLYING PROBLEMS...
THE REAL ECONOMY WILL CONTINUE TO DETERIORATE SIMPLY BECAUSE THE WAY THAT CONSUMER CREDIT WAS DONE PRIOR TO SEPTEMBER 2008...IS NOT COMING BACK...!
AND THAT MEANS THE SECURITIZATION OF CREDIT CARD DEBT AND MORTGAGE DEBT WILL LIKELY NOT RETURN ANYTIME SOON...NOR SHOULD IT.
IN SHORT THE FED HAS PERFORMED CPR ON THE BIG BANKS AND WALL STREET...TO STOP A CATASTROPHIC "ARREST" OF "THE SYSTEM"....
OF COURSE CPR...IS NOT A CURE FOR HEART DISEASE...AND THE CONSEQUENCES AND AFTERMATH OF THE "CPR" ARE STILL UNKNOWN...
WILL THE MASSIVE LIQUIDITY THAT WASHINGTON HAS PRINTED AND BORROWED...MOVE INTO COMMODITIES...? THIS WOULD BE MORE LOGICAL AT THIS STAGE THAN PLUNGING IN PAPER ASSETS AGAIN...
PROBABLY THE BEST PROOF THAT THIS IS A FALSE DAWN IS THAT CRISISES OF THIS MAGNITUDE ALWAYS TAKE A WHILE TO WORK OUT...AND THIS ONE IS ONLY IN THE EARLY INNINGS...
WELCOME TO WALL STREETS FIRST POST-CRISIS "FALSE DAWN"....
THERE WILL BE MANY MORE TO COME....
