In this wedge on the SP500 futures…you can see some overthrows which don’t occur on its cash market brethren. The futures market has probed breakouts to the down side which have consistently failed. Now that the fed must act to prevent the political catastrophe it has created by manipulating the newly created money provided to the large banks and primary dealers into “Risky Assets”, as Mr. BURNanke has said, supposedly “…to generate wealth and spending…” JP Morgan’s and many others off-balance sheet margin calls and, most likely, fraudulent “Hedger” position limit exceptions in Silver, Copper and many other commodities that will be classified as very “Risky Assets” indeed. They threw the world into turmoil…temporarily propped up balance sheets and will create a huge liquidity drain. Price collapses in inflationary assets not squeezing the big bank balance sheets should not do anything to help the situation as all that newly printed money simply goes “POOF”.
Great job Mr. BURNanke….now what are you going to do to try to save JPM & Co? Thinking of raising rates Ben?
for a more detailled look at the above chart click here.
