Complete Reversal From Wednesday

The Fed appears to be losing not only its grip, but its credibility as well.

Stocks Give Back Most Post-FOMC Gains

Dow down 127. Post-FOMC stocks closed up 147.

It's not just stocks, either. Gold, grains, and even crude oil have collapsed. The Dollar has also taken back most of its post-FOMC announcement losses.

Still More Fed Fatigue

Even Jon Hilsenrath, the Fed's "voice", has admitted that the Fed has a communication problem. The Fed is losing credibility. This is the consequence!

Fed Loses It's Muster

Virtually all the commodities that rose following the Fed's "no taper" decision on Wednesday have now reversed and declined sharply again, including soybeans, corn, and gold. The Euro has sold off again, and the US Dollar is rising!

Bernanke's Bubble, Commodities Version

This is the reaction to Bernanke's surprise non-taper announcement yesterday! It's Bernanke's Bubble, version II!

Gold's Best Day in Nearly Five Years!

Bernanke's Bubble

This is what will one day come to be known decades from now as "Bernanke's Bubble". He has been perpetuating it now for nearly five YEARS! Today's Fed announcement is just the latest installment.

 

Note also that on this chart, stock values are at a level on the Bollinger Bands where they have historically reversed and fallen back to the Exponential Moving Average. Will they do that again, or continue even higher, taking us well outside the Band that represents two standard deviations, and propelling us toward levels that represent three standard deviations? If so, then the bubble behavior is even more compelling, and is even more likely to collapse in a house of cards.

Today's Dollar Devastation

What more need be said? The Fed has said there will be NO tapering. None!

Prepare for destruction!