Wednesday, June 19, 2013

DJIA Closes Down 206 Points or 1.35%....

and the yield on the  US Treasury10 Year note climbs 14 basis points to 2.33%.  All on Bernanke comments that Fed "tapering" of QE3 may start later this year.

That's the headline story, anyway. The real reason the stock market is headed lower and interest rates are climbing is that since approximately the start of the year money supply growth has been tapering on its own.

1 comment:

  1. I'm as good as anyone at reading goat entrails but this event is most interesting.

    "When in trouble or in doubt, run in circles, scream and shout".

    What happens in a year and a few months?
    1. This "tapering" has kicked in.

    The Bernank has been, in his clouded mind anyway, the Good Monetarist. Maybe it's the "Good Mao-Netarist" since he has been instrumental in replacing economic decisions with political ones.

    A good monetarist would KNOW that events NOW will be apparent in 16 - 18 months, especially M2. Tapering would not even be on the table if all the Political Savants were on board with the other Statists.

    Something is Wrong.

    If you want to send me Consulting Fees for that statement, get in touch with RW and we'll split the fees 50-50.