WALL STREET IS PROTECTED BY THE CENTRAL BANKS...AND THEY KNOW IT...
HENCE THE RISE OF STOCKS...NO MATTER HOW BAD THE REAL ECONOMY IS...
THIS WILL CONTINUE UNTIL A CERTAIN "RANGE" IS REACHED...BECAUSE THERE IS NO REAL GROWTH IN THE REAL ECONOMY...
TRADERS HAD THE "BERNANKE PUT" TO TRADE OFF OF...
NOW THEY HAVE THE "EURO PUT" WHICH PROMISES TO ENGORGE THE WORLD ECONOMY WITH CASH...TO KEEP THE WELFARE STATES OF EUROLAND GOING...
THERE IS REALLY NO REASON TO SELL STOCKS NOW... BUT THE REASONS TO BUY ARE STRICTLY DICTATED BY THE RANGE THAT THE PUTS WILL ALLOW...
STOCKS SIMPLY WILL NOT BE ALLOWED TO CRASH... PAPER ASSETS ARE PROTECTED BY THE CENTRAL BANKS...
BUT THE REAL ECONOMY IS ON ITS OWN...
THE NOTION BEING THAT PAPER ASSETS ARE THE MODE BY WHICH 'WEALTH' TRICKLES DOWN INTO THE REAL ECONOMY...
PERHAPS....BUT THAT IS ALSO WHAT CAUSED ALL OF THE PRIOR ASSET BUBBLES...
SO THE CENTRAL BANKS ARE REALLY JUST WAITING AND HOPING FOR THE NEXT BUBBLE...AND HOPING THEY CAN CONTROL ANY UNDERLYING INFLATION THAT REACHES THE REAL ECONOMY BECAUSE OF IT...
GAS PRICES ARE THE CANARY IN THE COAL MINE FOR THE US...
AS LONG AS GAS STAYS UNDER $5 LONG TERM...THE FED CAN PRINT MONEY...
$5 GAS WOULD PUT THE REAL ECONOMY IN A FUNK THAT EVEN THE CENTRAL BANKS AND WALL STREET COULD NOT IGNORE...
