How can you just leave me standing? Alone in a world that's so cold (So cold)
Maybe I'm just too demanding
Maybe I'm just like my father too bold
Maybe you're just like my mother
She's never satisfied (She's never satisfied)
Why do we scream at each other?
This is what it sounds like
When Doves Cry
Well, did the market come to a bump in the road or the end of the road this week? It wasn't a dramatic selloff, except it was a selloff, and it happened at the exact time the market had been rallying. There was a reason for the abrupt stumble into the closing bell. San Francisco Fed President John Williams mentioned the possibility of less bond buying as the economy improves. According to his own models, the economy is picking up the pace, and that means the $85.0 billion a month crutch can be tapered off and maybe ditched by year's end.
This would be big news from any Fed official, but Mr. Williams is a die-in-the-wool dove, and he's beginning to see the light. Well, not see the light per se just thinks the economy is on the cusp of walking like a natural man. I'm not convinced about the strength of the economy, things are gradually getting better, but the things that make the Fed print in the first place are abundant. Be that as it may, one day the Fed has to stop this wild experiment that challenges everything from common sense to laws of math. It would be great if they pulled the plug on the presses in an obviously strong economy.
It would have better if the Fed never printed at all, but it's a moot point.
What is interesting for the second time in as many days is we saw investors bolt for the exits fast. The first time was the initial reaction to earnings from Deere that saw its share collapse $10.00. There is a serious undercurrent of anxiety, a pullback would relieve a lot of that even if it means doves stop crying.
Message of Hard Asset Markets
Very rich people get ready for inflation different than you and I- they don't buy guns and bomb shelters.
While debate rages over how much impact Ben Bernanke has had in the stock market rally, there is no doubt Fed money printing is the main driver for an unprecedented rally in art. On Wednesday, Christie's established numerous records with an auction of contemporary art.
The total haul (with commission) was a staggering $495.0 million paced by an array of new milestones:
Moody's Puts Puerto Rico on Downgrade to Junk Review Citing Very High Debt, Pension Obligations, Chronic Deficits; Exodus Underway | Mike Shedlock
Radical Capitalism: A remote Indonesian village runs its own telecommunications company. (From a laptop and a tree) | Nick Sorrentino
Open Letter to Obama and Congress From Internet Giants Calls For Reining In Government Surveillance | Nick Sorrentino
(An important interview) Saving the Net from the surveillance state (And Crony Media): Glenn Greenwald speaks up (Q&A) | Nick Sorrentino