THE DOT - if this turns orange or red be alert

Wednesday, November 11, 2009

Brainstorming Wednesday

1. This is rally weird even at the March lows we never went that low in the Rydex?? Can not get my head around that manipulation scheme. As we make new highs the Rydex makes new lows even some contrarians play a weird game or as we saw for the ISE options at the low insiders take positions. In June July the market ended up making a new upside wave.



2. The real reason why the FED wants the interest rates to stay at 0 is that they know how bad the balance cheats of the financial institutions are . The low interest rates do not benefit Mainstreet anyway as banks have even raised interest rates for them. The low rates are a pure carry trade financing instrument so banks can produce profits in order to compensate the losses of their old mistakes. This comes at a high cost for Mainstreet as they can not deliver any meaningful income for their savings - except they join the insane stock market rally. That is the other purpose of this game - completely sponsored by the Obama administration. The explanations below is just bullshiting propaganda as it looks insane to have interests at zero if the 'recession' was really over.

Excerpt

US Recovery to be Weak, Erratic: Top Fed Officials

High unemployment and reluctant consumers will likely make an incipient U.S. economic recovery weak and erratic, top Federal Reserve officials said in a string of speeches across the country on Tuesday.

iStockphoto

That means interest rates, currently at historic lows close to zero, should remain near that floor for the foreseeable future, the policymakers said.

"The strength and durability of the expansion is in question," said Janet Yellen president of the Federal Reserve Bank of San Francisco, in Phoenix, Arizona. "High unemployment, weak job growth and paltry wage increases are a recipe for sluggish consumer spending growth and a tepid recovery."

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