Larry Levin's Blog : Levitation Act Part IV

Fraud Street pulled off another marvelous levitation act today to close out the month of August. Although both economic data points came in better than expected, they were neither wildly optimistic nor good enough to offset Tuesday’s horror show data. The intra-day low of just 4-days ago was 100 S&P points lower. So based on nothing but counterfeit hopium nonsense of the coming QE3, the S&P is nearly +10% off that low. I noticed that the financial media began questioning this levitation act late yesterday and again this morning. Even they have temporarily put down the pom-poms to query the dodgy levitation act. One network had an analyst on (I believe from one of the major banks) this morning that was asked if he believed this QE3 rally could last – is it real? His response went something very similar to this “I know it is a fake QE rally, BUT I DON’T CARE. I don’t care what the Fed does as long as it makes the market go up.” Let me rephrase that for you: To hell with economic fundamentals; to hell with proper accounting, to hell with counterfeit dollars; to hell with Fed generated commodity inflation; to hell with Fed induced bubbles, TO HELL WITH THE FREE MARKET…we at XYZ bank only care about what will make us money, and that is an ever-rising stock market. Can this hopium-fueled rally last through Friday? Will Friday’s sure-to-be horrible jobs data also be ignored? I guess we have the bankster’s answer: to hell with everything, we want our rally! Trade well and follow the trend, not the so-called “experts.” Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.