Archive - Nov 14, 2010 - Blog entry

The Fed initially claimed QE 1 was an emergency measure that would save jobs and the US economy. Amazingly this one time emergency measure (which failed to do anything for the US economy, I might add) has now become a way of life for the Fed.

Indeed, QE 1 never really ended as the Fed continued juicing stocks every options expiration week even after QE 1 was supposedly completed. And yet, despite this, the Fed has now announced QE lite and QE 2.

There are two dynamics going on in this market. Call it force versus force. It is the overbought, over bullish and over valued market that should rollover versus the buyer of last resort, the Federal Reserve. And there can only be one winner.

If the market hasn't topped out already, it should do so within a couple of percent of the recent highs. Rallies should be sold and stops tightened up. The market is prone to sudden sell offs. There will be better risk adjusted opportunities to buy in the future.

This isn’t about jobs at all. It’s about power. It’s about who is going to dictate policy to the rest of the world. Bernanke wants emerging markets to bear the costs of a financial crisis that originated on Wall Street and was nurtured every step of the way by the easy money policies of the Federal Reserve.

Bull Bear argument

A just machine to make big decisions--Programmed by fellows with compassion and vision--What a beautiful world this will be...

If we don't prosecute the criminals, our economy will NEVER recover