US joins EU, Great Britain and Japan in recession whether it meets the "official criteria" of the Conference Board- this morning's negative GDP print is enough confirmation that biz activity is slowing.
Markets may really like that- they've been floating up on the sugar high of stimulative monetary and fiscal policy and "optimism." Bad print in numbers may only be taken as assurance that more sugar is coming.
Banks and hedgies are driving the market- the banks using loopholes to get around prop trading to gamble in the market using the public's money which is on the deposit at the banks and which is growing as individuals leave the market (despite what CNBC says). Hedgies (and banks) are using the carry trade off the dollar to fund risk on trades.
I'm only interested in protecting myself and staying away from the whole thing but my guess is risk stays on for a while as da boyz are now fully confident that the Fed, BOJ, EU, et al has their backs.
Soooo..... I have no idea when it dawns on them that this time in particular, levitating assets has done nothing to deliver growth. Next week, quarter, year?
That's the point where Jesus will show up with his ugly stick and start whacking the moneychangers- and the time to be a little mouse in his hole.
Re: Happy days
If one listens to Krugman, he believes the gov't hasn't thrown enough money into the economy. Thus far, we've thrown hundreds of billions at the economy only to see us dip back into a recession. I don't know how long the party lasts, but I'm liquidating almost all of my stocks before the inevitable crash.