Wednesday, December 4, 2013

The Warped World of Wall St

Only in the Fed-warped world of Wall St! This chart is from this morning. A private jobs report (called ADP) that is released each month two days before the government report, was better than expected this morning. It wasn't stellar, but it was better than was anticipated. At first, stocks fell, anticipating that the Fed is more likely to "taper" off it's debt monetization. But then, shortly after the stock exchanges, stocks, took off, leaping higher instead. So now, I guess we are to assume that ALL news is good news. Bad news would signal the Fed's intentions to continue to print money as a free gift to Wall St. So buy stocks! And good news is a sign of economic prosperity to come. So buy stocks!

When stocks go higher without regard for ANY news, it sounds like a classic bubble to me!

For perspective, in order to bring the economy back to the state it was in before Obama was elected president, it would require about 500,000 jobs be created every month until his presidency ends. This morning's "good" jobs report indicated that 215,000 jobs were created last month. And on THAT news, stocks leaped this morning!

Only in the Fed-warped world of Wall St!