YES, STOCKS CAN RALLY...
BUT THERE WILL BE A HANGOVER IN THE MORNING...
ITS CALLED GOLD AND OIL...
THIS "RECOVERY" SIMPLY COULD NOT STAND $3 GAS...
IT WOULD BE A DISASTER... THE FED IS OUT OF BULLETS ...UNLIKE THE LAST TIME GAS HIT $3+...
THERE SIMPLY WOULD BE NOTHING THE FED COULD DO BUT RAISE RATES...
BUT HERE'S A LITTLE SECRET...? BUT Shhhh...?
IF THE FED DID RAISE RATES TO PROTECT THE DOLLAR....?
STOCKS WOULD RALLY WILDLY ...
AND THE PRICE OF GOLD AND OIL WOULD COLLAPSE IMMEDIATELY...
TRUE, THERE IS MORE TO IT THAN THAT...
BUT IN A MARKET THAT RALLIES OR PLUNGES ON DAILY DATA POINTS...
THE NOTION OF A HUGE RUN IN STOCKS AFTER THE COMING RATE HIKE WOULD BE A BIG RELIEF...
WHY SO...?
BY PROTECTING THE DOLLAR...AND RAISING RATES...THE FED WOULD "PROVE" TO THE WORLD THAT IT IS STILL "SANE"...AND NOT THE SLAVE OF THE BUBBLE ZOMBIES ON WALL STREET...
JUST THAT ONE SMALL ACT OF "SANITY" IN THE MIDST OF A WORLD GONE BUBBLE MAD...
WOULD BE SO WELCOME...THAT EVERYTHING WOULD REVERT TO NORMAL AGAIN...
THE WORLD IS ALWAYS QUICK TO FORGIVE AMERICAN MONETARY TRANSGRESSIONS...
IF ONLY FOR A WHILE...
THERE ARE STILL THE TRADE DEFICITS...THE HEALTH CARE DEBACLE...AND THE WAR BUDGETS ...THAT WILL HOLD THE US ECONOMY DOWN..."STRUCTURALLY"....
UNTIL OBAMA CAN "CURE" THOSE PROBLEMS...
