In all our quest of greatness,
like wanton boys, whose pastime is their care,
we follow after bubbles,
blown in the air.
Stocks took a serious turn lower after the January Fed minutes release caused some concern that the Fed would begin to diminish their QE strategy.
Well, they might switch it to some other more effective method of providing relief for the monetary mismanagement of the financial system, but the idea that they would do so because the economy is recovering or the banking system is healthy is ludicrous.
Forecasters Keep Seeing a Recovery Just Around the Corner
I attribute this to jawboning, perhaps wishful thinking, and certainly more perception management.
Bernanke and the boys are caught in a box of their own construction, and they do not see a clear way out. Or perhaps they do, but they are too servile to the monied interests to take it.