It used to be over the last few quarters when the printing presses were humming to the tune 'bad news is good news' (for the stock market). It was predictable and everyone felt richer (even when the majority of stocks are owned by less than 40% of the population of US) even those that did not owned any stocks felt the same. Never mind the dropping labor participation rates to multi-decades low, or that food stamps recipients are rising or that many more Americans are now classified as disabled or that created jobs are mostly Mac or part-time jobs. Things are looking up. All was good.
That was so yesterday, now we only go up.
Yesterday's US May 2013 durable goods (2013/06/27) printed at 3.6% on expectations of 3.0%. The stock market took this as further confirmation that the US economy is improving. It was bullish for stocks and the S&P 500 increased 0.7% to 1,588.
Today the Commerce Department reported that gross domestic product expanded at a revised 1.8 percent annualized rate from
January through March, down from a prior estimate of 2.4 percent. So the Fed's printing presses is not slowing down after all. That's a bullish signal right? Right. We are now at 1,600.
All stations are a go. Captain Bernanke. Aye Aye Sir! Warp speed Sulu, warp speed.
It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights. Ludwig von Mises - The Theory Of Money And Credit - 1912
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