The ENTIRE economy is hooked on Bernanke easy money. Before official tapering, money growth is already starting to slide (See the
EPJ Daily Alert). There are only two choices at this fork in the road, keep money growth slow and crash the Bernanke manipulated stock market and economy or shoot more money into the veins of the economy, ultimately leading to spectacular price inflation.
Dow Industrials 14,758
-354 2.34%
Nasdaq 3,365
-78 2.27%
S&P 500 1,588
-41 2.51%
U.S. 10yr yield 2.42
+0.06 2.66%
Markets Diary
4:26 PM EDT 6/20/2013
| Issues | NYSE | NASDAQ | NYSE MKT |
|---|
| Via WSJ |
| Advancing | 170 | 363 | 63 |
| Declining | 2,976 | 2,158 | 333 |
| Unchanged | 34 | 63 | 18 |
| Total | 3,180 | 2,584 | 414 |
| Issues at |
|---|
| New 52 Week High | 17 | 44 | 3 |
| New 52 Week Low | 375 | 74 | 102 |
We can live with 10,000 Dow. The interest rates are the key thing. They all know what high interest rates will do to housing and Federal budget.
ReplyDeleteRW,
ReplyDeleteEven if the Fed winds down QE, couldn't they also do something to put pressure on the banks to empty their reserves to flood the market with money?
RW,
ReplyDeleteJust checked Fed data.
Currently the banking system is sitting on $1.8T in excess reserves.
My understanding is that with a 10% reserve requirement this means that this is a potential $18T time bomb waiting to explode.