What Is Happening Behind The Scenes Is Very Worrying

What Is Happening Behind The Scenes Is Very Worrying

After a wild Fed decision trading day yesterday, what is happening behind the scenes is very worrying.

From Art Cashin, Head of Floor Operations at UBS:  On this day (+2) in 1831, Saturday strollers failed to notice two men who stood quietly on the steps of the National City Bank main office on Wall Street. But in the drizzling rain who would have noticed. The building (still standing) was originally the Merchants Exchange and dominated Wall Street with its grand classical columns like something out of ancient Rome. 

So, even though they looked like Cassius and Casca (without the togas), they seemed to blend in. While they didn’t have the keys to the city, these two did have the keys to the bank. And they used them. They used them to withdraw over $245,000 from the bank without benefit of teller (or even an ATM). 

Thus an Englishman named Edward Smith, alias Edgar Jones, alias James Smith, alias Jay Honeywell performed the first bank robbery in U.S. history. While his associate was never found, Smith was caught, indicted and sentenced by the General Sessions Court to five years of hard labor at Sing Sing. (Even though over $190,000 of the loot was recovered.) 

The bulls did not get robbed yesterday. Instead, the Fed gave them a smile and a wink and the bulls celebrated as if school was closed. 

Firm Oil And “Gradual” Fed Nearly Lead To New Highs – Stocks opened higher Wednesday, primarily on a rebound in crude, which in turn seemed to be inspired by a clear drop in inventories in the API report. 

The opening bump was also helped by markets in Europe who showed very mild gains but gains nonetheless. 

Interestingly, stocks held the opening gains through the morning. 

They got a very mild bump around 10:30, when the DOE appeared to confirm the drop in crude inventories indicated by API. 

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King World News

Interviews with market experts from around the world with a focus on precious metals.