Uncertainty of the Fed. That's what they are saying is the cause for the now four day losing streak in the markets. To that I ask the logical question. What uncertainty exactly are we talking about? Is the who? Or the what?
It does not take a genius to fully grasp the fact that the economy is still in the dumps. No news flash there. It does not take a genius to fully grasp that the Obama administration has absolutely no clue about how to fix it. Nor does it take a genius to draw the logical conclusion that the Obama administration isn't going to do anything to fix it.
So here we are. I don't see anything uncertain about that. That seems pretty much set in stone as of this writing.
Of course we do not know who will succeed current Fed Chairman Ben Bernanke. But we've got a pretty good idea who it may most likely be. Think like Obama for just a second. Janet Yaller is likely to continue to prop up the economy through quantitative easing. Would this be right in line with what Obama would like to see happen? I think the obvious, glaring answer is yes. Prop it up. Because nothing he will do can prop anything, let alone get anything back onto a path of recovery.
"Keep printing me more money, Fed. I'll keep spending. I'll keep looking to raise the debt ceiling," says Obama.
"The cupboard is bare," said the brilliant mind of Pelosi. "There is nothing to cut."
The fact is that the Fed obviously seems to be in consensus that the economy is in a heap of crap still. And as a result it will continue to use QE as a way to help along this wheezing, dying thing. There is not one single economic indicator that would currently suggest otherwise.
So why in the hell is Wall Street selling off claiming uncertainties?
I think the simple answer is that they want it both ways. They want the economy propped up to artificially inflate the markets, and they want the economy to do well enough to support itself. They are not going to get the latter. So the former right now is the only alternative. And they want to be certain that the Fed is going to hold up what the Obama administration is certainly pulling down. In the interim.
To me it is all a load of crap. The new Fed Chairman nomination will shortly be announced. Wall Street will breathe a sigh of relief. The markets will reverse course and start rallying again. And who will make money? Those us of who saw the writing on the wall before the writing was put there.
Little guys like me buying into the uncertainty.
I am accumulating now just like I accumulated at the bottom of the market. I am certain that the uncertainty in the market is simply a panic maneuver. Not a wise one. And I will invest contrary to it, and while I cannot be 100% sure, I think it will mean gains ahead.
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