Deflation can be Deceiving
Ben says things are getting better, really, it looks to me that all that has happened is that the fat cats have bought up the foreclosed houses, corporations are squeezing their employees, employment is weak, pensioners are getting 0.5 % interest on their savings. Sequestor is like a big head wind. FED easy money first created a gold rally a few years ago , then it created the stock market rally which was topped off by corporate profits created on the backs of their workers, this is success ?
What I am saying is that FED tapering will not be the reason stocks go down eventually. Stocks will go down because their prices are based on a poor foundation and are over priced because of that artificiality. What I am also saying is that interest rates from here are going to be more based on market conditions than FED action. What Ben really said in his own way, is that he has lost control of something he wished he had never touched.
Yesterday, assets like stocks and gold declined to levels that we previously indicated will be the general low area of the May – October 2013 rollover trading range. Specifically, we would expect the 1556 area on the S&P to potentially be the low for this summer’s trading range.