The Market is Always Right, If for Just a Moment
Todays knee jerk rally is as transparent as it gets. It is based on Janet Yellen being a dovish new FED leader, someone who will push higher employment, the biggest problem on the economic scene. The problem is, employment issues are a down market function of bloated asset values that inhibit real economic deployment. If corporate managers can sit on cash and make more money than hiring people why would they take the risk to invest in real growth?
One thing that no one seems to be weighing, as I have not seen anything in the financial news pertaining to this idea, if Summers really is a good economist, he would know that the FED is not the ultimate savior of the economy, only a place holder to keep things going, and the situation that a new FED chief will walk into is unwinnable. In reality a scapegoat is being sought to take the blame for the Greenspan-Bernanke Double Bubble show (Assets first, Bonds second), since when do you solve a cheap money approach with a cheap money approach, more cheap money ?
We all know Congress is the number one factor pulling down everything.
In the end, this will be a brief final look at absurdity.