IF 2010 WAS LIKE A FANTASY FOR WALL STREET ... 2011 WILL BE LIKE A NIGHTMARE...
CONSIDER:
THE TROUBLE WILL START IN THE BOND MARKET AND IN KEY COMMODITIES LIKE OIL... THE KEY COMMODITIES ARE THOSE THAT IMPACT THE AMERICAN CONSUMER DIRECTLY...FOOD AND FUEL...
THESE TWO MARKETS ARE ENOUGH TO END ANY RALLY IN STOCKS...WHICH ARE THE TARGETED ASSET CLASS BY THE FED TO "RESTORE" THE ECONOMY VIA ANOTHER ASSET BUBBLE...
THE FED PLAN IS:
... HIGH STOCKS LEAD TO MORE CORPORATE SPENDING ON EQUIPMENT...WHICH LEADS TO MORE JOBS...AND THEN MORE CONSUMER SPENDING...!
BUT WHATS WRONG WITH THAT PICTURE...?
ITS ALL BULLSHIT...IT IS A COMPLETELY BULLSHIT NOTION OF HOW THE ECONOMY WORKS IN REALITY...
UNLESS AND UNTIL DEMAND RETURNS...COMPANIES WILL NOT HIRE OR SPEND...
AND NO STUFFING OF BANKS WITH MONEY FOR WALL STREET ASSET INFLATION WILL CHANGE THAT...
THE MORE LIKELY SCENARIO IS...
THE FED CONTINUES STUFFING THE BANKS WITH MONEY...STOCKS RISE TEPIDLY...THEN PERHAPS COMMODITY INFLATION REACHES A CRITICAL MASS...OIL RISES TO $120...GAS HITS $4...THE ECONOMY COLLAPSES...AND THE BOND MARKET TANKS AS STAGFLATION LOOMS...
