Right. Those expecting Fed hawkishness only heard hawkish
words, not actions. The Fed is still the same - propping
markets, saving popped
bubbles, blowing new bubbles by keeping rates well below
inflation. Now they want to blow a stock market bubble, not
an oil bubble, and there lies the problem... They ran out
of "good" bubbles to blow. But we are still observing
very green stock futures at night. Can't keep these hands off
the markets, and the Ponzi scheme policies are coming back
home to haunt them... via much lower USD, but derivatives
are still expanding exponentially, now hitting a quadrillion.
QUADRILLION!!! THIS IS UNBELIEVABLE!!!
What were the actions? Panic cuts in January that doubled
many commodity prices since...
Will these actions EVER cut the Fed's credibility with
foreign investors? I think we have seen some of that,
as Trichet essentially forced talking about hikes on Bernanke.
If US Fed does not follow through, expect the Euro to soar,
and a major dollar weakness.
I have a feeling the crisis will not be over until the creator
of the crisis, the Fed (easy money) is fully discredited.
Unfortunately, that means the buck going down a lot. |
