Keep Unwinding the Balance Sheet

That is what we want to see from the FED. We want to see a return to normalization. The QE’s beyond QE1 were a wrong direction because the money went into asset speculation.

We know the cry babies want to keep funny money on the table.

A better solution would be for congress to agree to increase infrastructure spending dollar for dollar vs the roll off.

Then we could see a stimulus usage beyond speculation.

As to the Markets..

The S&P seems to be locked into the 2620-2720 no-mans land as it awaits direction, actually the bottom half of that range, 2612 – 2676 for the last two weeks.

I am not sure what would give it direction, as nothing the FED can say will change the underlying fundamentals that are building.