A stock trader sent this tidbit to me. It’s a quote from a research analyst:
It’s worth noting that central banks in the developed world pride themselves on preparing the markets for their actions so as not to cause excess volatility. The Fed has failed at this as their QE tapering communication has gone awry, causing markets to take a swoon. Bernanke’s chief job next week is to get control of the QE3 conversation and remind markets that the Fed will not do anything too hasty as it exits its massive stimulus programme.
Submitted by Tyler Durden on 06/14/2013 – 11:32
The days of reasonable economic forecasting are over. Today, an economic forecast is more like the analysis of a criminal mind than the evaluation of economic data. The dominating role of government overpowers markets intentionally. In the short-term that will continue. Reactions to Federal Reserve minutes referencing continuation, alteration or cessation of quantitative easing cause stock markets to move by over 100 points. Other markets are affected by government interventions, just not so noticeably. Long term, markets will overpower government. Welfare states can no longer maintain their level of spending, services and welfare. However, they dare not stop lest civil unrest and violence break out. The bind they are in has no solution. Governments around the world are doing whatever is necessary to survive. Lying, stealing and outright confiscation will begin in order to support their bankruptcies. Cyprus was a minor precursor of what is coming.