After a slew of negative economic data stocks ended the day almost flat. The DOW was down just a point and a half, while the S&P was down 4 due to weakness in the banks.
So why didn't we see a sell-off today? Because Uncle Ben has made it all but illegal for the stock market to go down.
So let's start with a quick recap of today's news:
1. PPI came in at +.4 vs. consensus of +.1 Translation: Inflation. It's what Bernanke wants, but it's not good for those of us on Main St.
2. Unemployment: initial claims jump from 445k to 462k. Oh, and let's not forget the revision to last week's numbers...upwardly revised for the 24th out of 25 weeks. Click here to read my previous post about the BLS and their fraudulent reporting of the unemployment situation.
3. The US trade deficit came in at -$46 billion on consensus of -$42 billion....the second highest our deficit has been in years.
All of this was reported at 8:30 this morning, and though we saw some initial selling, we ended the day flat.
And to top it all off, we have that fucking idiot Cramer posting headlines like this: Bears Can't Stop Us Now, talking about how the bulls are in control because they are all a bunch of "the glass is half full" kind of people. What a crock!
Bruce Krasting summed it up the best on his blog this evening. I encourage you to read the whole thing by clicking here, but in summary, he's calling out everyone who believes Ben Bernanke's Quantitative Easing (QE) is a good thing, just because one of the side effects of QE is a sky-rocketing stock market. The most salient comparison he makes is when he says, "QE being good is like people saying that war is good for the economy." Indeed.
Over the weekend I hope to find the time to write in more detail about QE, inflation and the Fed, but for now, suffice it to say that more QE is not the answer. Bernanke's QE is trashing the dollar in the hopes that he can cause inflation. Why does he want inflation? Because he's trying to reflate housing prices in order to salvage the balance sheets of the too-big-to-fail banks. Well guess what, Ben? The housing market is not coming back anytime soon. Meanwhile, the inflation you're causing is already manifesting itself in commodities and consumer goods. Oil is on the rise, and the largest component increases in the rising PPI reported today was food and gas.
So, what do we have? Higher unemployment, an increasing cost of living due to higher prices for basic consumer goods, and a dollar that is getting more worthless by the week due to Ben's incessant money printing. But that's all okay, because the market is rising and Apple is now trading over $300/share. Cramer and the bulls can laugh now, but trust me, continuing down this path will not end well for 98% of Americans.
Don't forget, we resume POMO activities on Friday.....let the printing presses roll and equities soar.....
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