posted on Jun, 22 2013 @ 07:01 AM
Originally posted by surrealist
Well the market grew because of great economic fundamentals, you know? It is now falling because of deteriorating funda..... wait!
Oh that's right, it's falling because of Fed Reserve announcing it will wind down its monetary policy and end it next year.
Something is with this picture.
Personally I just think the market is adjusting to the Fed Reserve announcement, ...
Yes the gold and equity markets got clobbered by ~2%...
by the Fed announcement of soon to come 'tapering
' of the $85 Bn a month in MBS buying and UST buying all of which gets money injected into
the banks & financial entities who in turn inflate the stock markets
imo... by all rights the DOW should retract another 1,000 points at least... but its not yet time for the masses to rebalance their portfolios back
to Bonds & out of Equities and Commodities (yet)
So that 353 point drop in the market will be about the worst of this correction...as the money changers manipulate things even more
all this is because the Federal Reserve money machine has installed itself as the replacement for the former 'Middle Class' investor sector...and the
fear that the Fed will lessen its role as the money generator will backlash itself and reinforce the the idea that the Fed is Now the permanent
replacement for the now dismantled 'Middle Class' investor
there is the realization that the (fundamentally changed economy) service-economy in conjunction with ObamaCare nationalized medicine will not support
a vigorous & dynamic economy with enough money creation or enough money velocity to support a inflated stock market
ERGO the Fed Reserve will leak info that the eventual 'tapering off' will be delayed into some future time probably when the present 'illusion of
Recovery' statistics are shown to be mere accountants tricks and Obama faces Impeachment hearings
additional material: (a 3 minute read about the Wealth Effect)
edit on 22-6-2013 by St Udio because: (no reason