Don’t muck the recovery!
So far, what seems to be an imminent attack from Israel on Iran, and the 1st default for no justifiable reason in over half a century by a sovereign member of the largest economy in the world, has only been a fly on the shoulder of the current run in financial markets.
Ben Bernanke has repeatedly stated that the Fed will use any and all tools they have at their disposal to insure that a recovery takes place and is not hurt in any way.
With Oil flying to $110 a barrel within the last thirty days based on a rumor concerning an explosion inside a Saudi oil field then settling around $106, only to then be dropped by another rumor regarding a release of SPR’s (Strategic Petroleum Reserves) from the US and Britain. A battle of rumors during the fear of war….
Minutes from the FOMC meeting explaining how they are going to RE – MONETIZE the debt with principal payments received, and bank stress test results with planned actions to get those payments to the Fed, numerous tools are being distributed to the powers that be to insure the appearance of a solid recovery.
The electronic traders are on deck! beware investors!
Average investors can not compete fairly in a market controlled by robotic traders…
The remaining P.I.I.G.S countries have not gone away….do you really think they will not want to have their debt erased as well?
Our debt continues to increase, now over $15 and a half TRILLION! and greater than our GDP…
But everything is ok, right?
If you are still riding this wave, it may be wise to swim in with your profits and look to gold as it has dropped from nearly $1,800/oz.
JP Morgan’s Jaime Dimon seems to have fired the first shot in this current battle to keep the markets up…JP Morgan is also the player that issued that sell of roughly 15,000 gold contracts during Bernanke’s speech last week that started this downturn in gold, something to keep in mind.
At the end of the day, if you are trying to make sense of everything that is going on in the financial world, don’t forget……
It’s election year!