Thursday, October 7, 2010

Day Before the N.F. Payrolls Report - Review

Main Events Recap during this week :

The main impetus for Tuesday's rally was a volatile combination of free money from the FED and other central bank interventions in the market.

The Japanese central bank (BOJ) intervened again in the Forex markets to buy US dollars and sell the Yen. It didn't work longer than a few hours and then the US dollar tanked, which was cheered on Wall Street.

Yes, the Banksters on Fraud Street and at the FED want you to lose your purchasing power in favor of the their assets increasing.

Additionally, the BOJ said that it will expand its asset purchases to outright purchases of REITs, equities, corporate bonds, and land.

Fraud Street cheered this which led to immediate talk of the US Federal Reserve doing the same. Of course, this is happening in another way now...via POMO.

In more steps to give Banksters money to jack up the market, the FED was buying Treasuries from the Banksters via its POMO operations, which led to massive equity purchases. When the POMO buying spree ended Tuesday, the majority of the rally ended with it. After a 90-min lull in the market, the S&P was only able to extend its gains an additional 3.50 points. Don't underestimate the amount of money the Fed is  buying.  The Federal Reserve is now the second largest holder of US government debt. They are monetizing $11 Billion of bonds a week ! Without the FED manipulation, the market it's dead.
The non-Manufacturing ISM data was better than expected and certainly helped the rally, but by itself wasn't even close to offsetting the recent avalanche of bad economic data.

The FED was manipulating the market again Wednesday. As soon as the FED was done buying, the S&P sank to the lows of the day and never returned. Without the FED manipulating, the market it's dead

Ireland was downgraded again Wednesday.

Greece was audited and found to STILL be lying about its colossal debt. More problems from Europe are coming folks.
Food stamp welfare is at a new record. How cares as long as the rich are still spending.That is Wall Street attitude.
Unemployment remains at nearly 10%.
Wednesday's private payroll estimate was shockingly worse than expected.

The IMF slashed U.S. GDP growth rates.
QE2 by the FED is all but guaranteed and will increase the money supply by at least 50%, or $1 trillion. Some are calling for an additional $7 trillion of asset purchases, which should make the banksters quite happy indeed. You? Not so much. It may be a nightmare.

Sarah Palin still thinks she can be President even if she odviously can't deliver a smart speech about anything.

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