“America is the wealthiest nation on Earth, but its people are mainly poor, and poor Americans are urged to hate themselves... Americans, like human beings everywhere, believe many things that are obviously untrue. Their most destructive untruth is that it is very easy for any American to make money. They will not acknowledge how in fact hard money is to come by, and, therefore, those who have no money blame and blame and blame themselves.
This inward blame has been a treasure for the rich and powerful, who have had to do less for their poor, publicly and privately, than any other ruling class since, say Napoleonic times. Many novelties have come from America. The most startling of these, a thing without precedent, is a mass of undignified poor. They do not love one another because they do not love themselves.”
Kurt Vonnegut, Slaughterhouse Five
The Fed and the ECB were able to reverse last week's market plunge to key support through the generous application of jawboning about stimulus.
The Fed made happy talk about possibly extending QE. That will be tested in their announcement from their latest meeting next Wednesday.
And as for the ECB buying corporate debt, I will be interested to see the meetings between Signor Draghi and the stern German bankers.
The cash SP 500 has made it all the way back to its 50 DMA and some key resistance. If they can break that and hold a couple daily closes above, they may have a shot at making a decent fourth quarter for their bonuses.
The Banks and their minions care little for the real economy. The poor results from consumer staples are a glaring alarm in the financialised economy.
There will be more earnings reports and more geopolitical drama next week. Let's see if the Fed can deliver, and if traders' memories will last more than a week. This is doubtful.
Have a pleasant weekend.
