Thursday, April 4, 2013

What's Wrong With This Picture?

This picture is a screen cap of the headline on the website of the Wall St Journal overnight. The news out of Europe is AWFUL! SIX straight quarters of economic contraction!

And yet the stock market futures ROSE about 50 points overnight on this news! Stocks continue near all-time highs, having reached fresh all-time record highs in 2 of the 4 previous days! What gives?

The Fed and other central banks are so busy propping up the stock market that they have removed all perception of risk from the market! Market participants routinely disregard all news and data (like this headline), analysis, and risk. They simply don't care any more about the "real" economy, because they are so addicted to easy money from the Fed that the "real economy" has become irrelevant to them. 

Central bankers have created moral hazard, and done so intentionally, to benefit the wealthiest people in Western civilization! We know this because studies have repeatedly shown that the vast majority of stocks are owned by the wealthiest people in our society. So the Fed is engaging in its own stimulus plan to boost the wealth of the already-wealthiest members of civilization! And this stimulus plan has been ongoing now for FIVE YEARS -- NONSTOP!

This is a textbook case of a bubble! But now, Ben Bernanke is not only doing it intentionally, but boasting about it as well!