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ho hum

risk assets soar as traders follow the Pavlovian commandment which is "thou shalt not permitteth thy doggie to pull back the curtain on the Whiz whilst he is bloviating on the bigscreen."

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5 Replies

peak oil, peak corn

peak Fed?

 

Today of very soon?

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Re: peak oil, peak corn

For those who are politically opposed to the Fed- which I am in my own way, as it has eveolved- today may have been your day.

 

 

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Veteran Advisor

Re: peak oil, peak corn

Do you think that Ben will atend the funeral of the livestock industry?  I don't think they have a clue anymore.  Or maybe they do and this is the attempt to run this train right off the tracks.  Time to bail on the critters.

 

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Re: peak oil, peak corn

Hi JR,

 

Yeah, this stinks.

 

I'm still trying to decide what I might think about it all.

 

Back when he was at the NY Fed and being vetted as Greenspin's successor, Bernake wrote a paper about the importance of "communications policy"  i.e., how the chairman influences markets by what he says, how, when etc. We've just seen a 6 week ramp, coordinated with Europe, ahead of the elections.

 

It might be worth noting that considerable easing had already been priced in but that is the beauty of communications policy, milking it for all it is worth.

 

Anyway, higher stock prices are better than a kick in the butt but they aren't going to fix anything; likewise for housing where if anybody noticed yesterday the risk on ripfest actually took long interest rates higher.

 

Germany backing on bonds and forced austerity isn't going to fix anything in Europe.

-Less than 2 months to the election but I assume it all holds that long. 

 

 

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Veteran Advisor

Re: peak oil, peak corn

Mornin there Nox,

 

I noticed the long term rate thingy. 

 

That is the beauty of this whole scheme. It works till it don't!

 

This may very well be the last hurrah.  I do not know.  THe thing is that the rising oil prices will be the damper on this thing.  With middle East unrest and the Drought this gives the fed the ability to hide behind the headlines.  I think 2013 is shapeing up to be very UGLY.

 

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