Authored by Mark St. Cyr,
This past Friday saw what many like myself can only describe as a blatant example of just what’s wrong with both the economy – as well as the markets.
At precisely 15 minutes before the closing bell on Wall Street the now Chair of the Federal Reserve, Janet Yellen gave a press conference detailing further insights into upcoming monetary policy. I guess two days worth of FOMC discussions, along with a press conference detailing all that was discussed immediately after, followed by a question and answer session about all those ‘insights and decisions’ wasn’t enough. For the markets remained red for the week while losing all its post FOMC pop which in itself is an ominous sign.
At first blush some might contend, ‘Well, that’s a good thing they decided to communicate even more. Best to have any and all the information available as soon as possible. After all: more information is always better for the markets – no?’
Yes it is, however, when it exposes just how cozy (as well as frightened) monetary policy setting has moved from the appearance of setting beneficial policies that help ensure a free and open capitalistic system – to one hell-bent on serving a newer more dominant form of crony styled capitalism rampant within our markets. Where winners and losers are decided solely on their ability to manipulate their bottom line earnings ‘beat’ via access to resources made possible only via the Fed.’s current zero bound stance. (i.e., ZIRP) I don’t believe that was their original intent.
If you were one of the few (i.e., not one of the Wall Street ‘In crowd’) that watched and listened to that presser on Friday. You were left dumbfounded on just how illogical, as well as contradictory nearly every example given was as to what one should now infer about what the Fed. is going to do next – and when.
This post was published at Zero Hedge on 03/29/2015.
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