Home > Uncategorized > 2012/08/29: Quick Post: Weekly Perspective available… with Beige Book next QE influence

2012/08/29: Quick Post: Weekly Perspective available… with Beige Book next QE influence

© 2012 ROHR International, Inc. All International rights reserved.

Very short and sweet today, because all of the perspective is still much the same as yesterday’s post. Along with that the Weekly Summary Perspective on Key Influences is available through the link in the right hand column, joining yesterday’s Weekly Report & Event Calendar.

All we can say is Europe’s latest round of ’Kick the Can’ still seems to be working very well.  And yet some reservations are turning up regarding the situation in Spain. We will have more to say on that very soon, along with quite a few other factors that are less than constructive in spite of the current hopeful central-bank psychology.

 

And that is especially so in light of all the anticipation into the Jackson Hole Central Bank QE-athon on Friday. Now that Signore Draghi has (curiously) cancelled his Saturday speech out there, even more emphasis will be placed on whatever Mr. Bernanke has to say. As regular readers know, we think all of that is so much falderal regarding any actual assistance for the real economy.

Yet incremental influences on the Federal Reserve psychology must still be watched closely for the potential ‘knee jerk” impact on the near term trend; such as any possible temporary boost it might provide both equities and commodities. And of course that includes the Beige Book which we are about to see.  

For anyone interested in a glimpse at our broader contrarian psychology on that, please review our opening comments in the Weekly Summary Perspective. In addition to being contrarian on expecting any action from Mr. Bernanke, we still feel that the entire focus on what the US central bank does is misguided: this is all about Europe, and it is no surprise to long-term observers that the Spanish regions are now becoming a more acute issue along with the central government balance and the banks.

And yet, the equities seem to remain resilient for now.These psychological “bad news is good news” phases are always so interesting!!

Thanks for your interest.

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