The Bubble Grows! Stocks Leap on Bad Economic News

The federal jobs report this morning showed less than half the number of expected jobs were created last month than were expected. That's bad for business! That suggested that corporate America may be seeing a future recession coming down the road. But the stock market is up nearly 300 points! Why? Because, as indicated in the above headline, Wall St expects the Federal Reserve to initiate more quantitative easing, creating more digital money to artificially boost stocks even higher into bubble territory! The bubble grows!

Fed Is Pandering to Stock Market. That Spells B-U-B-B-L-E!

I thought this was an interesting insight this morning from Bill Blain at Morning Porridge.
"US employment is at a high, the labour market is tightening, there is minimal real inflation and the stock market is off to the races because the Fed says its ready to ease if trade tensions impact the stock market economy.
"In 35 years of markets, this is perhaps the stupidest moment I’ve ever seen.
"There is a danger Powell et al seem are confusing the Dow and S&P for the health of the economy, thereby making the Fed complicit in the ultimate market distortion that’s being going on since someone dreamt up QE. The World’s most important central bank is missing the point completely, and more or less promising to bail out stock markets if Trade Tension causes them to weaken."

One of the chief characteristics of a bubble is that everyone dismisses risk. Heeeeere we go again! 

Farm Production Weak

"The 12 month period that concluded at the end of April was the wettest 12 month period in U.S. history, and more storms just kept on coming throughout the month of May," said Michael Snyder today.
Bloomberg said yesterday, "There has never been a spring planting season like this one. Rivers topped their banks. Levees were breached. Fields filled with water and mud. And it kept raining." 

Despite this, it appears that corn and other agricultural prices may have topped out.

Manipulated Markets, Not Free Markets

Guess which one of these headlines has affected stock prices today. The Dow is currently up over 400 points. How can stocks be so bullish when today's economic data is so bearish? Central bankers, that's how! Today's markets are manipulated. They are no longer free markets!