Minyan Mailbag: Taking Our Medicine
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next column with that very intent.
That last explanation about the post-Fed rally was highly enlightening.
So, of course I'm back for more. ;-)
Today is following another pattern I've seen often in recent months.
Overnight the NDX and SPX futures were down pretty hard as markets sold off around the world. Then, as the NY open nears the futures rally and the market opens pretty much flat.
Any thoughts on who or what is behind the early morning futures buying today?
I am sure we will see both covert and overt response from the Fed over falling stock prices. We'll get talk from salesmen like Snow and Bernanke and behind the scenes asset buying.
It won't matter in the long run, just make things more choppy. In the end, cancer needs real treatment and in our case, the patient (the economy) is not getting it. For a real person, chemotherapy almost kills them, but the patient knows it is necessary and is willing to take the pain in order to get better. In our case, the doctor doesn't have the fortitude to administer the right medicine: much higher rates. This would nearly kill the patient, but eradicate the cancer (debt and fiat currency).
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