Just when you thought it was safe to hope for more bad news being good news we complete the triumvirate of housing, manufacturing, and now confidence all beating expectations. But we Moar QE. Consumer Confidence just beat expectations for the first time in 5 months rising to its highest level since April as it appears the self-reinforcing 'Fed's got your back' belief once again becomes a self-defeating 'how can we QE when everything's peachy' scenario. To wit, 12-month inflation expectations rose from 5.3% to 5.4% - as we noted the inflation-argument for NEW QE here [4]. This is simply remarkable levels of cognitive bias considering the savings rate just rose to a one-year high implying people are expectation deflation - dis-inflation at the least. It would appear that indeed - given the market's downward trajectory - that the stealing of one's own punchbowl realization is occurring [4].
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