“We Are Living With Maximum Uncertainty”
“We Are Living With Maximum Uncertainty” by Brian Maher – Daily Reckoning
The Dow Jones plunged over 1,000 harrowing points last week.
And so investors entered Monday’s drama with one eye on the stage… and the other on the exit.
But the Big Board put them to ease with a thumping 354-point rally.
The S&P worked a 41-point advance of its own. The battered Nasdaq surged 143.
Stocks were mixed today before scratching out a late day gain.
But what next?
Will the rout resume… or is the bottom already in?
“We are living with maximum uncertainty,” cries financial analyst Catherine Austin Fitts, adding:
The old system could go five years or five months…If you look at all the information we need to make an intelligent assessment, we don’t have access to that information.
That is precisely the dilemma at hand.
Five years, five months, five days, five minutes — nobody knows.
For the reason you need look no further than the Federal Reserve…
After the financial crisis the Fed began rewriting the traditional market script.
Through quantitative easing and related stagecraft, the new directors worked to eliminate the normal twists, the turns, the heart-thumping perils.
That is, they labored to produce theater without drama.
It would begin happy, stay happy… and end happy.
The great market villain — the business cycle — they attempted to expunge from the story entirely.
It was heroes across the board.
As explains John Rubino of the DollarCollapse.com blog:
One of the strangest things about this strangest-ever expansion has been the way pretty much everything went up. Stocks, bonds, real estate, art, oil — some of which have historically negative correlations with others — all rose more or less in lockstep.
But can you have a Cinderella without a wicked stepmother… a Star Wars without Mr. Darth Vader… a Rocky without Apollo Creed?