PRE MARKET
As we write this, the German Dax is up over 200 BECAUSE GERMANY SAID THEIR ECONOMY MAY CONTRACT THIS QUARTER. No…really. Very simple…the European Central Bank is going to lower rates again even though rates are already negative. Do not forget we are lowering rates. India lowered rates. Australia lowered rates. China is making Bernanke look like Volcker. On top of that, we are raising federal spending (debt) again.
Don’t ask us why this is good news for markets. We have been telling you for 10 years that markets are moving on easy money, easier money and easiest money in history. We are also getting some good reactions to earnings.
serenity now……..serenity now……..serenity now……..
No political party, president or federal reserve board will ever get serious about the debt and spending because it would propel the economy into a deflationary implosion on their watch and they would never be re-elected to continue feasting from the public trough of tax dollars and pretend money. Why should we trust the people to solve a problem when they are the ones that created the problem in the first place? It’s never their fault, it’s always the other guy or the other party that is responsible. At least we know what the socialists are but for the GOP to say they are fiscal hawks is a joke. It’s only when they are not in control of the treasure that they purport fiscal responsibility. The government makes everything more expensive by their fiscal and monetary policy. I’ve given up on the idea that the debt will be addressed.