Wednesday 28 March 2012

Don't scare the muppets!.............from Rico

Falling stock prices scare the Muppets (asset price deflation).
- Can't have that!

In Ben's recent speech to the National Assoc. for Business Economics, he lit a fire under stock prices.
- The stock markets, being addicted to low interest rates, got a nice 'hit' from his remarks. But, it seems not to have lasted and the junkies already need another 'fix.'

In the Orwellian sense, bad news is good news.
- Asia sells-off on Monday's weaker profit news.
- The Bank of Spain expects a negative Q1 print.
- The American housing slump is accelerating.

AND FUTURES ARE GREEN?! Which makes perfect sense, since good news is good news, and bad news....thank you better news!
- It doesn't hurt when the FED's Rosengren says more stimulus is on the table.

By now it's obvious, even to the mildly retarded, that the FED will not rest until the stock markets are at fresh, all-time distorted, manipulated, nominal* highs.

*For the non-muppets, assets (stocks or gasoline, or precious metals) when stated in NOMINAL terms only 'look' like they are increasing in value, but when adjusted to REAL terms (purchasing power) these Dollar-denominated items require increasing amounts of prettily-engraved FED paper to buy the same quantity.
- Gas, for example, is not flirting with $5 in real terms, only nominal terms, since it takes a whole lot more paper to buy the same gallon of it as the currency is debased and debauched.

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