11 thoughts on “The Fed Targets Stock Prices – Here’s Why

  1. On the pension fund issue, I am of the same opinion as your friend. Going one step further, I believe we will see private equity join hands with the worlds FED’s and help facilitate the asset propping process. A model for how that may work would be the private equity purchase in 2016 of Krispy Kreme, Donuts (of all things!) the ECB purchasing a large slug of the bonds floated to seal the transaction. The beauty of having private equity take public enterprise private is the assets are then “mark to model” , effectively hiding the underfunding problem. Be interested in you/your friends thoughts on that. Best regards, dh

  2. I think we are channeling our inner Zimbabwe. Yes the stock
    market has gone through the roof but, the dollar is rolling over.
    Correct me if I’m wrong but isn’t that what happened in both Zimbabwe
    and Venezuela ? I cannot imagine the social consequence that is going
    to unfold when the U.S. enters that level of currency devaluation.

  3. The compelling question for most people who are not shills for the banking cartel, I suspect, is when and how does this blow up. To me, the answer to how it blows up has been revealed, over the last number of months, by the action in the dollar. In the face of rising treasury yields, the dollar has been falling. This tells me that the Fed is committed to a course of currency debasement, that will go beyond the quarantine of money counterfeiting within the financial markets.

    There is no way for the federal government to fund it’s burgeoning deficits, other than through money printing. We are witnessing collapsing real savings pools, the end of the business cycle, skyrocketing debt in all sectors (as you point out), and the demise of the petro dollar.

    Some might say the other cartel members will provide the funding. Maybe. But at some point in a cartel, the members begin to chisel on each other, recognizing the jig is up, and retreating from the rigging scheme to save themselves – particularly with a member such as the Fed, who are compelled to fund a financially and internationally intransigent government such as ours.. We might be at that point now.

    The chart of the 10 year has completed a cup and handle and is targeting 3.5 %. I don’t see how the stock markets can maintain their current valuations when the 10 year will be yielding almost twice as much as the S&P. They either nip it in the bud beforehand, (halt the rate escalation), or there’s big trouble in River City.

    An intervention in the treasury market should signal an even bigger sell-off in the dollar, as everyone will know the game (QE) is on again.

  4. It seems like the central banks and their minions have a choice between letting the stock market tank as it wants to naturally or having it nominally increase while effectively tanking just as bad when considering the lost value of a crashing dollar . And they’re choosing the latter.

    It’s reminiscent of that Greenspan testimony in front of congress circa 1998 where he said that they can guarantee that you’ll get your social security check. They just can’t guarantee the value of that check.

    1. Very interesting comment, re: Greenspan & the ‘value’ of one’s social security check in the future. I would love to see the original. I’ve done a quick search at cspan’s website looking at transcripts but can’t find this quote. Do you think you could meditate a bit more on it and see if the date / forum come back to you? 🙂

  5. Great. Today marks my first day of retirement (on a company pension) after 29 years of cubicle slavery (Hell with fluorescent lighting, I prefer to call it) and I stumble across this article. You’re top notch, Dave, absolutely, but excuse me while I knock back a couple of stiff rum and cokes, I suddenly hear them calling my name.

      1. Takes a good push to overcome inertia Dave. Hey it’s rum watered down with coke. Hell if I were him I’d go right for the tequila shots lol

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