or "money printing" with open-ended (meaning there's no end in sight or cap to how much money the Fed may spend) security purchases- mainly buying mortgage backed securities at a rate of $40 billion, and yes that's a B for billion PER MONTH. This is all in a joint effort supposedly to stabilize the housing market and try to prop the economy back up.
And because of this the market took off today, Dow closed over 200 points, S & P 500 gained 1.63% up 1.53% for the week, and we saw the EUR head up about 127 pips on the day. The real mover was the AUD/USD to the upside at 149 pips, while the inverse correlated USD/CAD fell pretty hard at around 107 pips.
While going into the Fall Gold is usually up and the markets start moving well with more volatility, but what we are seeing today is pure market manipulation. This is something I've already talked about before but to say it again it would not surprise me to see markets continue to rally in favor of Obama's re-election.
Ben Bernanke knows this, and definitely remembers who reinstated his position as Federal Chairman of the Federal Reserve. I will say that if Mitt Romney is elected to be the next president of the United States he has already made comments to get rid of Bernanke and get someone else in there more competent and less inflationary driven, and stimulus happy. Which if you can't tell already, I'm in favor of getting rid of "The Bernank" ASAP before he destroys this country and flushes the value of our dollar down the toilet.
Anyway, be-aware of what's really going on. The manipulation has begun!
bye for now,
-david
No comments:
Post a Comment