YOU CAN BUILD 22 WORLD TRADE CENTERS PER/MONTH on what BERNANKE IS GIVING WALL STREET
each month ... One World Trade Center cost $3.5 Billion ... Bernanke is handing-over $85 billion monthly. Good thing he's not doing anything for the economy, any suggestion of an 'economic recovery' would cause a complete collapse of the global stock market.
It has done a great job to continue to move the market up. They can continue buying and selling higher. This has been another great example the last five days. Now tomorrow we could get a down day of maybe 25 points up in SDS. It is really nothing. Then next week we continue making higher highs and higher lows in the market. To think the market would be up another 70 points and another new record high in this environment appears a little delusional. Yet here we are with not even a pullback never mind a correction in site. Now they have the markets collude with them. Money in the USA can buy nearly anything. Government will continue to give them money and let the have their bonus as long as they play along.
As of 2008 one of the primary themes in the economic recovery has been the creation of jobs. There has been no lack of recommendations as to how that objective can be accomplished, yet as we sit here today there is no doubt whatsoever that the efforts have been an abysmal failure. The Federal Reserve has been given a mandate by Congress to incorporate ‘job growth’ in monetary policy and the Federal Reserve has actually established a benchmark of 6.5% as the acceptable Unemployment Rate with regard to various monetary policies it implements; such as quantitative easing (stimulus) a program designed to inflate the price of the stock market and other more creative activities like funding vocational training and employment opportunities for American Indians and Alaska Natives. At this time the Federal Reserve is creating $85 billion dollars per/month in order to ‘stimulate’ economic prosperity. Here’s an example of what $85 billion dollars will buy you; the construction of One World Trade Center in New York cost $3.8 billion, you could build approximately 22 individual One World Trade Centers per/month or so far this year, eighty-eight! It is important to note that figure is for 2013, it does not include what the more than $3 trillion the Federal Reserve has already created would have built. Last week, this is the result of what $85 billion has provided in results. March U.S. Non-Farm Payrolls were up 88,000 although the expectation was for 175,000. The March U.S. Civilian Employment was negative 206,000. More than 495,000 simply left the work-force, no longer seeking a job. Evidently the $85 billion has also not been particularly positive for ‘earnings’ as well since companies issuing ‘negative preannouncements’ for Q1/2013 hit 78%. That marks the fourth consecutive quarter that the percentage of negative guidance has been above 70% at the end of a quarter, but not to worry, it is only the third consecutive month that the percentage of negative EPS guidance has increased, right? But the Federal Reserve is a global animal and in a connected world we should feel good about the prospects for all-to-grow, like our neighbors to the north in Canadian that reported March Employment as ‘negative’ 54,500, only the worst print in 4 years. But not to worry, in Germany ‘unemployment’ for March skyrocketed up 13,000, about the number of people that work building One World Trade Center when you include all support associations. So in conclusion let us give thanks to the Federal Reserve which has indeed accomplished one remarkable feat … it has risen the price of the Dow over 1,900 points in 2013 in the worst economy in more than 80 years and I’m sure the more than 46.6 million Americans on Food Stamps are indeed grateful as well as the more than 17 million children. I’m confident that the 33,000 over-forty-years-of-age employed at ‘minimum wage’ having spent over $300,000 in educational expenses to obtain a PhD are also pleased. But moreover, the 11 million homeowners that are in foreclosure that may own Netflix stock or Best Buy must be thrilled.