Interesting start to the morning trading.
The market appears to be expecting a huge QE2 stimulus announcement tomorrow.
The dollar is selling off as it begins pricing in more easing:
At the same time bonds are up sharply since the start of trading. Take a look at the 10 year:
Gold and silver are both up on the falling dollar news. Stocks are also up as the lower dollar/higher equities correlation continues to hold.
The big money is clearly expecting something huge tomorrow from the Fed. Based on the early trade I would guess they are predicting at least $1 trillion in QE stimulus over the next year.
The consensus is the Fed will announce $600 billion over the next 6 months BUT they will also announce that they will keep the door open to continuing the program.
How any of this is good for our nation is beyond me. Strong economies are not built on weaker currencies. QE2 will continue to keep prices artificially high at a time in which the average wage in this country is falling. How is this good for America?
It's great for the bankers of course as they get another $1 trillion to blow bubbles with. However, at the same time, it's going to force even more people to start eating out of garbage cans because they will no longer be able to afford to live.
I just hope that karma still exists in this world. Recently, I have questioned my faith in such a thing, and too be honest I have begun to lose faith in this country.
Let's hope some real leaders are voted into office tonight that will look after WE THE PEOPLE instead of greedy bankers.
In the meantime watch the markets: If the QE2 comes in lighter than expected then the market is setup for a nasty sell off. If the pigmen get what they want(and from the looks of it today they will) stocks could march higher as the gamblers blow more bubbles with $1 trillion of fresh cash from their friends at the Fed.
Folks. let us never forget: Greed is wrong and eventually it catches up with you: