What the hell, it's not our money. We spent "our" money 20 years ago – this is our children's money and their children's money we're dipping into and, by the time we get to great-great grandchildren – well, I'm going to want a paternity test before I start cutting back on my excess just to keep them from being broke, right? Who's with me?
Clearly Uncle Ben and the Fed agree, as they throw another $21.5Bn per week into the mix – hoping to get a reaction like kids tossing Mentos into a fountain. Turns out you need quite a lot of them to get a reaction but the Fed seems to have an endless supply of breath mints. As noted by The Burning Platform last Summer:
Bennie and the Inkjets went all in yesterday at 12:30. This Princeton professor who has never held a real job in his entire life actually proclaimed that buying hundreds of billions of toxic mortgage backed securities from the insolvent Wall Street bankers that own the Federal Reserve, will benefit the average American. He proudly stated that he will hold interest rates at 0% until at least 2015. This means that senior citizens can plan ahead and stock up on cat food to eat, because they will be paid nothing on their savings for at least the next three years. Ben’s claim to help home buyers is a bold faced lie. Mortgage rates were already the lowest in history. Interest rates are not the problem. Debt is the problem. Insolvency is the problem. Spending money we don’t have is the problem. Debasement of the currency is the problem.
For those of us paying attention to yesterday's action, the markets are getting stranger and stranger. Yes the S&P logged another up day but all of the day's low volume came in the last 15 minutes and it was ALL downhill into the close. We had noted a similar pattern on Monday, though less pronounced and this kind of fake, Fake, FAKE market behavior is just the kind of thing that leads us to get to CASH ahead…
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