Friday’s Fantastic Finish – S&P; 1,750 Edition

We're just a bit off Tuesday's spike high of 1,759 and we closed that day at 1,754 – up 1,088 points (163%) from our March, 2009 low of 666 (the mark of the Dimon!).  As you can see from Dough Short's chart, we've had 4 rounds of QE to get us this far and that was after a couple of bailouts but that's all water (or money) under the bridge and here we are…

We've been plowing higher this week, despite a lot of poor earnings reports, in anticipation of next week's Fed meeting and the anticipaiton of not only extending QE "Forever" for a little longer but now talk is going on of INCREASING it, because our economy is weaker than the Fed thought (as evidenced by many disappointing earnins report and lackluster job creation).  While these are possibly good reason for more QE – are they good reasons for record market highs?

Apparently both traders and Banksters think it is as we now have $20Bn more margin debt than we had when we made that horrific mistake of having way too much margin debt in 2007.  Remember how we were "shocked" that the Global economy wasn't as good as we thought and that China was weak and Europe had problems and the market dropped 60% in 2008?  Yeah, good times…

No wonder, just 5 years later, everyone is so anxious to do it again!  This time IS different because last time we didn't have the Fed pumping $85Bn a month into the system along with the BOJ's $75Bn and the PBOC's $30Bn and whatever that thing Europe is doing is.  In 2008 Bush handed out $160Bn as a one-time stimulus but we blew all that money on $140/barrel oil and $5 gasoline – good times…

IN PROGRESS

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