Federally Fueled Thursday – Traders Get High with Janet

Dammit Janet, we still love you!  

That tiny little woman sure packs a hell of a punch when she wants to goose the markets.   Yesterday the Fed said nothing, essentially changing about 10 words from their last statement:

Information received since the Federal Open Market Committee met inMarchApril indicates that growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditionrebounded in recent months. Labor market indicators were mixed but on balancegenerally showed further improvement. The unemployment rate, thowevugh lower, remains elevated. Household spending appears to be rising more quickly. Bderately and business fixed investment edged downresumed its advance, while the recovery in the housing sector remained slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.

Seriously, that is about it (see link), yet the market took that statement to mean that our indexes should plow on to record highs into the close.  The S&P closed at 1,956 – 5 points over the June 9th high and, as you can see from the p/e chart on the left – we are now back to valuations we haven't seen since just before previous, massive market corrections.  

Can this time be different?  Sure it could!  This time we have crazy Central Banksters pritning $29Tn and putting it into the markets or directly into the vaults of their Member Banks (because the Fed is a Banking Cartel and not a Government entity at all) at the expense of the people they supposedly serve.  As detailed by Lee Adler:

The Fed has expanded its Term Deposit Operations, moving more spaghetti around on the plate, the plate being the liability side of its balance sheet- aka “money.” The Fed announced that it would do 8 weekly operations with its member banks beginning on May 19. The first 4

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This entry was posted on Thursday, June 19th, 2014 at 8:30 am and is filed under Uncategorized. You can leave a response, or trackback from your own site.

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