By Michael Mccune: The Rant (government auditor for 16 years) - Wall Street Anticipates Fed's Support - (( to Have Michael send you the Rant to your Email contact Him Here (( memccunewyo@yahoo.com ))

Wall Street Anticipates Fed's Support

The Federal Reserve is about to open meetings tomorrow. That explains the stock surge today. Wall Street is paralyzed and needs Ben Bernanke's unconditional support.

 

But a warning label came from one of the Street's unabashed fans, Jim Cramer of Mad Money. Cramer is convinced the market will be trying to anticipate how Bernanke will react to the various data points he has based his policies on. The move on the Street suggests the data is bad enough Bernanke will continue his support by printing more money.

 

Cramer's reason for following the Fed's meeting is quite simple, "The Fed delivered a monster wake-up call when recent commentary implied it could scale back its massive bond buying program sooner rather than later. That spurred the $3 trillion sell-off we just struggled through."

 

Cramer strill thinks the Fed's support is good, I think it is bad because it has skewed the value of the market from the price of the market. And the support cannot go on forever, leaving the question as to what will happen to the market when either the Fed is forced to raise rates and/or end the QE program.

 

Today the Fed gave its state of manufacturing report. The report was not overwhelming in showing strength if inflation is fully adjusted from the news. In fact, taking out all inflation leaves one with the impression the market needs a major pullback because value just isn't there. Cramer agreed but for another reason. "It suggests the actual economy cannot support rising interest rates. That's what was so unreal about the latest run-up in rates, it hasn't been justified by the data."

 

But the over-ripe basket of fruit is starting to smell--even if the phenomenal rise in stock price continues. This balloon is all about hot air and nothing suggests there is anything left in the Main Street tank to forestall the crash.

 

But that is where the world's central bankers--like old BS come in. They keep printing money to support the financial centers but that is leading to greater risk-taking by the people who cannot afford it--those without the printing press.

 

So Cramer continues to anticipate the end of the two-day meeting and the wreap-up report with bated breath.

 

Not me. I know Bernanke's thinking, he'll continue to do anything in his power to support nWall Street and Washington politics at the expense of the rest of the country.

 

Then, when it is his turn to determine the wreckage he has caused, he'll come up with some insane number like 1.7% as the 'official' inflation rate.

 

The man cannot help himself, he is playing a role where he has to be all-knowing but he is running our of juggling room. He also has pressure on from government circles to force inflation so the numbers will look better.

 

Expect QE3 to continue.

"I have sworn on the altar of  God eternal hostility to every form of tyranny over the mind of man."--Thomas Jefferson