[FoxV]

My God this market watching stuff is frustrating.

Noticed a very nice rally this morning apparently because everyone is expecting a "Good" GDP report. Well the report comes out, and not only does it say GDP has dropped more than expected (much more) but it also says that inflation has risen (much more than expected).

And yet, the market continues its rally.

So a report comes out to enlighten me. The jist of the article is that Ben is going to let inflation ride for a bit and not raise interest rates.

Well every time Ben says he's going to hold off interest rates, the Dollar drops, and Commodities sky rocket. The last time Ben said something this convincing about not raising rates, Gold hit $750. The end result is yet more inflation and not less.

So its obvious he's just trying to talk up another rally before he announces yet another 0.25% rate hike (which will result in a large drop of the stock market). The short sightedness in the market these days is unbelievable.

Anyways, it'll be fun watching the exchange rates next week as they take in the collapsing housing bubble with the thought of no more interest rate hikes (sorry mr bank of japan for all the foreclosed mortgage bonds you hold, but you can always buy more at our historically low rates of interest).

Good bye Greenback, it was nice knowing you


btw, for those who want a quicky on why Ben has years of quarter point hikes ahead of him check out the comment in this link (and for more detail, the Stagflation Godzilla essays)