"All frauds, like the wall daubed with untempered mortar, with which men think to buttress up an edifice, always tend to the decay of what they are devised to support."
Richard Whately
We might get more of the same around the Non-Farm Payrolls Report on Friday. In itself, the Jobs Report should be a real knee-slapper of slack jobs growth and the ever disappearing unemployed.
The Fed dispelled any illusions about ending QE early in their statement today. The chill passing over the economy has quite a bit to do with it. But the Fed will keep doing what they are doing until something improves or breaks, because they are locked into an obsessive compulsive box by the credibility trap of their own past policy failures and conflicts of interests.
So expect another bubble and crisis.
ADP employment numbers came up short, and that impinges on expectations for the Non-Farm Payrolls report on Friday.
National ISM was aenemic, but not quite a contraction. But it was enough to show that 'The Recovery' is no recovery.
Intraday commentary about the Fed statement here and the bubble environment caused in part by the Fed here. Please be sure to listen to Jeff Sachs entire speech and the Q&A session here, and recall that he was speaking to a conference at the Philadelphia Fed. Every time I listen to it I am astonished that it did not get a wider exposure, and nary a mention in the mainstream media. Sachs is no outsider, and hardly a starry eyed reformer. The venal stupidity of those in command is frightening even to longer term stalwarts.
I think it will take another financial crisis, and even more scandals and revelations. And I will be surprised if there are any lack of any of them, despite the war on whistleblowers and the muzzling of the media.
And speaking of modern money, it appears that the whizkids are short about $11.2 Trillion in money good collateral. I can only think of one form of money that bears no counterparty risk.
Benny's Theme
