On Sunday, the Federal Reserve panicked (again) and began their latest scheme (again) to desperately prop up the laughably overvalued stock market (again). I tweeted the following as the /ES was up about 30 points and all assets were exploding higher:
It takes balls THIS BIG to go on record like this (as opposed to every other financial prognosticator, who says THIS might happen or THAT might happen, and then claims to be right later by editing out the other half), but it isn’t my nature to prevaricate. The pigs at the Fed got their rally, and it lasted a few minutes. The market is realizing, every so slowly, that the Fed’s problems are far more massive than some dumb-ass dollar swap press release can achieve, and it carved 80 points off the pop, from top to bottom. As I’m typing this, the /ES is unchanged.
Crude oil has continued to slip lower, which for me is important as my greatest concentration is in energy shorts.
What’s remarkable is how weak the US dollar is. Here is a chart of the USD/JPY. Let me put it this way – – when the Japanese Yen is a bastion of solid financial prudence, you’ve got serious, serious problems.
I’ll close with a tweet I saw yesterday which should be enshrined in a marble monument.
