In this week's Off the Cuff podcast, Chris and Mish discuss:
- The Fed's fakeout
- No taper for you!!
- Happy days are here again
- Markets everywhere party onward – but shouldn't they do the opposite?
- Precious metals popping
- Dollar is down and gold is way up today
- Investing outlook
- Is time to just start dancing to the Fed's tune?
Today, Chris and Mish react to the surprise Fed announcement that the expected taper in its $85 billion/month asset purchase program is off the table for now.
A pretty staggering signal when you think about it: A full five years after the financial crisis happened in 2008, the U.S. economy is so fragile that emergency measures (there's no other description for $85B per month of assistance) are still needed. Not even a slight decrease to $75 billion/month, as was anticipated, can be stomached by the economy at this time.
Translation: $trillions upon $trillions later (mostly from taxpayer coffers into TBTF institutions) and we still have little to show for it in terms of "recovery."
So, the critical thinker would interpret today's news as sobering. Ghastly, even. But did the markets? No, dude – all the markets heard was: "Party On!!"
More liquidity sloshing around, pushing up asset prices everywhere the fundamentals suggest they shouldn't be.
by eexpo