The latest from Charles Hugh Smith. Here are the first two Fed Punchbowl Ingredients, followed by the link…
1. The Fed’s POMO bond buying/speculation-goosing program is irresistible: “don’t fight the Fed” means equities will be going up as long as the Fed is buying Treasuries. In other words, forever.
Let me pour you another cup of “juice,” brother, to celebrate a market in which declines are now officially “impossible.”
2. The “recovery” is limited to the top 20% of the households, but that’s good enough when coupled with euphoria-inducing statistics (new claims for unemployment dropping from 424,000 to 417,000–wow!) which don’t show more people being hired, just fewer people being fired.
As long as things aren’t visibly getting worse in the statistical pulse readings, then that is “proof” the “recovery” is “real.”
Let me top off your cup, pal, because the top 10% skimmed enough bonuses to boost the overall income numbers–even if the bottom 60% saw household incomes decline, the surge in the top 10% negated that decline and made the overall number edge up.