« ROUND Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next

A funny thing happened on the way to Bernanke's wealth-creation strategy program

By: capt_nemo in ROUND | Recommend this post (0)
Thu, 13 Sep 12 6:35 PM | 25 view(s)
Boardmark this board | De's Test Board
Msg. 44023 of 45651
Jump:
Jump to board:
Jump to msg. #

The unintended consequence of flooding the world with USDs, as we have pounded the table again and again on, has been 'spillover' into hard assets (or assets with relatively fixed supplies). To wit, oil prices are surging once again. Critically, as the chart below shows, each time this energy price hangover has trickled down to the consumer via $4 gas prices, it has marked a turning point in the US equity market. Of course, this time is different, but nevertheless one has to wonder how stock prices rise by any measurable amount with stagnant wage growth and price inflation in everything we buy and use (and now even the hedonically-tamped PPI is starting to show signs of instability).

S&P 500 'tops' vs $4 Gas Prices...

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/09/20120913_spxgas.png

http://www.zerohedge.com/news/4-gas-capping-bernankes-dow-20k-dreams?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

Just one problem with this thinking. The "Machine" has the best manipulators at the helm...........A rising market when nothing really warrants the rise!!!!!!!!!!!!!




Avatar

Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.




» You can also:
« ROUND Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next