I wish it had sunk through my thick skull on Oscar night in mid-March, but it’s screamingly clear now that the horrific distortion which has taken place in stocks isn’t due to Cathie Wood, Jim Cramer, or Artificial Intelligence. It all has to do with the latest handout to billionaires from the government in the form of the BTFP. You can plainly see in this layered chart that the moment that witch Yellen threw over $100 billion (yes, $100 billion, and climbing constantly) at the market, she made every bull ecstatic. It’s pretty much tick-for-tick.
The bastards at the Fed has pledged the program will be in place until “at least” March 2024 (which means the money is available through March 2025, since the banks get to keep it for a year). It’s honestly enough to make me want to me pull my head off.
Why am I so bothered by all this? Because it offends my sense of balance. I don’t believe in a free lunch. If the banks got $100 billion, where did it come from? What is diminished? Who suffers? I say again, you don’t get something for nothing. It seems, however, that the government is able to hurl countless trillions at these fake markets, keep them propped up, and somehow still have 5% inflation and strong employment.
Either someone is lying or I’m utterly missing something fundamental here. It makes. No. Sense.
