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The Great Disconnect

May 30, 2013

So, I open my computer early this morning and see that the futures for the U.S. equity markets are well into the green (positive). I see no reference to how the Nikkei did overnight, so I assume they must have at least applied a temporary tourniquet to their bleeding markets. Not so — the Japanese markets were down over 700 points, or more than 5 percent, overnight.

So, one can only conclude that there is something other than their terrible monetary policy causing this, since the world’s central banks have done the same thing they have done to a slightly lesser extent. There are a lot of incredible disconnects in the financial markets these days, but this is one of the biggest, in my opinion. This should be viewed as a vote of no confidence in the central banking policies in Japan. But if it was reported that way here, then wouldn’t one have to ask, “What about our own monetary policies and our own record-setting markets? Might they be subject to the same fate?”

You know, we need a really good distraction at this point — or maybe some bad economic news — to justify our continued stimulus programs and stop all this nonsense talk about when the Fed might have to “taper” their spending spree. Remember, bad news is good news because it justifies more liquidity! Party on!



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