We can look at these charts as subjects of interest to us as traders/investors but what this particular stock represents is increasing pain for consumers and the hard-pressed middle class in one of the worst, if not the worst "recovery" since the Great Depression.
Think of this as increased frustration at the grocery store, at the gas pump, at the hardware store, at the local restaurant, etc. While some of this rally is the result of the drought and I will of course not lay that at the feet of the Fed, it is a simple fact that the breakout on this chart today, is the DIRECT RESULT of Mr. Bernanke's insistence on implying that another round of bond buying is on the way.
When you pull into the gas station and fill up your car or truck, and are sent reeling at the cost, you can lay some of the blame right at his feet and the feet of his elitists on the FOMC who insist on pacifying Wall Street instead of having concerns how their policies are destroying Main Street.
No worries about inflation.
ReplyDeleteBernanke's "Gum-Flapping" today as lit a huge fire under U.S. Treasuries.
That means more fuel for the bonfire and more "Animal Spirits" for the stock traders to jam equities even higher, which will create the "wealth effect" necessary to offset $5.00/gallon gasoline and $6.00 Big Macs.
Once the CRB Index gets too extended, The Bernank will start screaming and hollering about "managing inflation expectations", threatening margin hikes, and all the rest.
And the poor commodity future long specs will be shot execution-style.
At any rate, the gold stocks on on fire today!
Gotta luv it. Still it seems like we don't. Reaay get it yet
ReplyDelete$16 trillion and counting. YELLEN IN THE WINGS. Take a few dollars.. The threat of chaos is on high alert. Do you feel the fire Benny?