Expect some action to prop up markets before Monday opening. I have no idea what the FED will pull out, unless they've decided it is time to push people towards the exits, they'll do something.
Also seems likely to me. Money flow is going into bonds and oil prices are down, so there isn't any reason not to prop the market that I can see, unless control has been lost.
The ficklemess of the herd is astounding - even worse than last year in my opinion. Just 2 weeks ago, the Dow Jones was trumpeted as being at a 4 year high, the Facebook IPO was eagerly anticipated to drive the market higher, and Buffet's annual meeting was the usual. There's little doubt in my mind that week saw the "eye of the hurricane" as "OLD foretold". Now we have stocks off 10% and barely up for the year and Facebook was a dud. Yet, during those 2 weeks, very little surfaced that wasn't already known.
We have to remember that this is the third iteration of a bubble and it's been going on for 12 years. Far more resources have been misallocated and lives depleted and wasted than in a typical generational cycle. 46 million on food stamps and growing every day. Scores of millions more totally dependent on government largesse as employees, contractors, or aid recipients (including social security). Reminds me of that day long ago when Gennifer Flowers announced that she had been Bill Clinton's lover for 12 years. One life depleted and wasted, but now scores of millions as the bubbles have spanned 3 Presidencies. Where did the money go? Infrastructure? No, Facebook and Apple and those are the best of the Black Holes, much better than the $5 billion and counting that JP Morgan has made disappear, for example.
Last edited by Higgenbotham
on Sat May 19, 2012 10:30 pm, edited 1 time in total.