It’s becoming more and more difficult to understand if good news is truly good news, or if good news is actually bad news. In addition, after conceivably deciphering this conundrum, we are then presented with the notion that bad news is definitely bad news, and we are also led to believe that bad news is essentially good news. Are you still with me? As an example, nowadays it would appear that any information which forces the Federal Reserve to continue to buy bonds is perceived as good news, which hypothetically means that the worse the news is, the better it is for the stock market on the upside — which is good news. Hmmm. And just when I thought that I had the Fed bond buying puzzle all figured out, along comes the most recent Egyptian crisis and I’m back to square one.
After the overthrows of former Iraqi President Saddam Hussein, ex-Egyptian President Hosni Mubarak, former Libyan leader Muammar Gaddafi, and now with the possible ouster of Syrian President Bashar al-Assad, it’s very clear that the CIA…oops, I mean the liberated and democratic seeking mass, would strive to put leaders into office that matched the image of what Barack Hussein Obama now sees as the “changed Middle East.” Of course for Obama, knowing full well what the people of the Middle East want and need in regards to leadership — after all, he knows the exact dollar amount that I should have in my 401K and IRA accounts and how I should finance my reduced retirement — it was without question that the Muslim Brotherhood definitely fit his bill. Yet, here’s where the confusion comes into play. Apparently, millions of Egyptian citizens don’t quite agree with our president and they aren’t exactly excited about Sharia law. Therefore, citing the abovementioned so-called logic, do the good people of Egypt now become the bad people of Egypt? Consequently, do we send in our drones, establish a no-fly zone, and quell the Egyptian military that just executed a coup d'état merely because our former handpicked Egyptian leader, Mohamed Morsi, isn’t on anyone’s “Fab 5” phone number list? In the past, getting rid of an unpopular leader was undeniably a very good thing, but these days it appears that it’s a bad thing. With all the twists and turns of world events featuring presidential declarations and central bank proclamations, is it any wonder that the average American citizen and perhaps all citizens everywhere are so bewildered about good/bad, up/down, and in/out, that they just tuned it all out?
Don’t you just long for the days of simplicity? I certainly miss the times when questions were very easy to answer, for instance: If Barack Obama is in the woods and makes a policy statement regarding the Middle East and there is no one around to hear him, has he really said anything?
Hussman's Open Letter to the Fed; The Problem with Bubbles; Textbook Pre-Crash Bubble; Reflections on Not Chasing Bubbles; Integrity vs. Respect | Mike Shedlock