Tag Archives: the Fed

Well, stocks are back at all-time highs. Ignited by the Fed’s “Not-QE” program and endless Trump administration teases of an “imminent” China deal, the S&P 500 has been propelled above its upward Bollinger band — a hyperextension only seen one other time since 2007.

Every week since Not-QE was announced has seen the S&P close green (this week finally ending the streak, barely). We’re officially in a melt-up, where both good news and bad news are accepted as valid reasons to push stocks even higher.

But what’s notable about this melt-up is that it’s missing a compelling narrative. Every past asset price mania required a feel-good mantra that convinced the masses “This time is different!”.

But today? What’s the radically better future being promised? Where’s the party train headed to?

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"If you’re rich you get a bailout. If you’re poor you get a handout. And if you’re middle class you get left out. " That's not a sustainable way to run the system, exclaims investment strategist Keith Fitz-Gerald.

A cancer at the core of our current economy is the magical thinking, "no pain, all gain" philosophy, pursued by those running it. They are doing all they can to remove the consequences of failure from the system — not realizing that failure plays an essential 'waste-clearing' function of a healthy free market.

Without the discipline of Darwinism, the individual actors in the system make all sorts of malinvestments that would never make sense in an efficient marketplace. But since the losses from these inane pursuits are socialized, there's no incentive to stop making them. At least, up until the point where the class who's back is burdened with paying for the socialized messes finally breaks.

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• The Dollar: Every Man For Himself
• The Fed’s Got POMO Fever!
• NFIB: Small Business Optimism Improves Slightly
• Hayward Admits Banks Stopped Lending to BP
• Insider Selling Hits Record $4.5B As Everyone Gets Out Of Market
• Oil Rises to Two-Year High as Equities, Dollar Offset Supplies
• Jump in Energy Demand Seen by 2035
• An Arctic Oil Spill Could Linger for Years
• Post Europe: Environmental Damage – Who Pays?

Insightful analysis on the Three E’s. Take home a Special Edition DVD today. (NTSC or PAL)

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