22 January 2015

SP 500 and NDX Futures Daily Charts - Madness

"What Wall Street and credit card companies are doing is really not much different from what gangsters and loan sharks do who make predatory loans. While the bankers wear three-piece suits and don't break the knee caps of those who can't pay back, they still are destroying people's lives."

Bernie Sanders

The ECB brought out a 'bigger than expected' asset purchase program this morning, as least compared to the leaks which they put out into the market earlier this week.

Stocks rallied on the news. This is pure financial asset inflation, and it will not end well.

The ECB will be 'proportionate' in the asset purchases, meaning France and Germany get the lion's share, and the Banks and financial firms will have their hands out at the very back of the truck, which has been backed up to their loading docks.

This is more 'trickle down' stimulus. It will not trigger broad inflation, because the money being created is wrapped nicely in packages and sent to the wealthiest in the form of the mispricing of risk on financial assets paper.

Have a pleasant evening.