Saturday, January 26, 2013
Operation Descending Exponential Twist
Ties that bind the banking community to the Fed and Treasury, which help bring about the near collapse of the world banking system in 2008, to the rescue through the secret terms of TARP, to the new Bernanke Bubble in 2013, the same outflow and inflow investment cycles prevail. Fund outflows found the bottom in 2009 and now fund inflows funding the top in 2013. Their entrance into the market comes after a DJIA rally of 114% from 2009 lows and a mere 33% higher since the Fed instituted Operation Twist in September of 2011 as the markets were about to renew their downside momentum. But just as this blog warned of the AAPL bubble floating where ever in may, so to will the S&P 500 and the DJIA drift with the collective descriptions of wonder attached to their ascension. But just as before, those subtle negative calculations begin to factor until a descending exponential event occurs sending markets lower. Same game.