31 October 2014

SP 500 and NDX Futures Daily Charts - The Fed Has Crossed the Rubicon

The Fed very deliberately stopped a market correction and managed to turn the equity markets around, very consciously, in order to end their taper without any negative effects to Wall Street.

Last night the Bank of Japan announced a more aggressive quantitative easing AND pledged a portion of their national pension fund to buying not only Japanese equities but also the equities of foreign markets.

The Fed and the Bank of Japan are back doing the money printing tag team and carry trades that carried the markets higher from 2002 to 2007 and helped to create the housing bubble and the subsequent financial crisis.

And it is obvious that Wall Street and the ruling elite have learned absolutely nothing. They go from crisis to crisis, with their delusions of power growing with each successful fraud. If there is another financial crisis and bailout, prosecutions may be among the least of their problems.

Right now the BOJ is exporting deflation to the US in the form of a strong dollar. This is not going to help a recovery, but Yen based printed money may help to swell paper assets.

This is a formula for disaster.