Wednesday, June 24, 2009
Indices look like they are about to fall off a cliff...
I think 920 is still in play, indices look like we could crash hard, but not expecting that just yet, I think we will get a orderly selloff with minor rallies to keep bulls in the game, 882-920 range we still are in.
As for the fed:
"The Fed has held its target rate for overnight loans between banks at zero to 0.25 percent since Dec. 16 and more than doubled the assets on its balance sheet during the past year to $2.1 trillion, expanding bank reserves and beginning lending programs to bolster the financial system"
"The Fed has purchased a total of $177.475 billion in Treasuries in the 31 buybacks of U.S. government debt since March 25. The central bank’s purchases pale in comparison to the record amounts of Treasuries the government is selling to finance economic stimulus programs"
What a big mess, the fed is basically doing a big ponzi scheme, when will the house of cards finally topple over? (I say by March 2010)