Archive for September 21, 2012

2012/09/21: Quick Post: Courtesy Brief Update: ‘Buzz Lightyear’ Bernanke

September 21, 2012 Leave a comment

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Short & Sweet again on the specific market comments in this post, because yesterday’s TrendView Brief Update is a pointed discussion of the most important trend implications of the seemingly ever-expanding quantitative easing efforts. From a technical trend perspective there is the very orderly and limited correction of the December S&P 500 future after last week’s explosive, QE-driven rally.

In light of the negative balance in the economic data this week (especially out of Europe and China), it is surely the confidence in the volume (if not the net effectiveness) of quantitative easing efforts that helps to underpin the equities rally. Other central banks either joined the party (Bank of Japan on Wednesday) or reaffirmed their commitment to monetary largesse this week. Of course, all that is occurring under the cover of leading ‘easy money’ guru Ben Bernanke, who is nothing less than the ‘Buzz Lightyear’ of quantitative easing: “To infinity and beyond.”

And for now he seems to have carried the day in spite of the relatively limited potential for rewards and significant risks accompanying this highly aggressive further liquidity expansion policy. We will have much more for you on that from highly respected sources early next week. But in the meantime…


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