“Calling QE not-QE doesn’t make it different than QE, but it does communicate the Fed’s panicky desire to mask its stupendous injection of financial cocaine into the financial system. The Fed’s level of panic is noteworthy, as is the absurd transparency of its laughable attempt to conceal its panic.
In the same fashion, the financial media is loudly declaring the current blowoff top in stocks is not a blowoff top. The delicious irony here is these denials are reliable markers of blowoff tops: the louder the denials, the greater the odds that this is in fact the blowoff top that many pundits have been expecting for some time, but always in the future.” – Charles Hugh Smith [1]
Comments Disabled To "The Editors’ Quote of the Day:"
#1 Comment By TJMO On November 20, 2019 @ 3:45 pm
To be fair to the financial press, quite a few have named the recent increases as a “melt up” (which is normally followed by a pull back of some severity), and QE is not just involved with monetary policy, but with the actual purchase of government securities by the government, which ceased. So, the quote may be overstating things a touch. People are not asleep at the switch, but the tools available to the Fed are somewhat crude and folks are taking a conservative approach in an attempt to try to avoid over-controlling and positive feedback looping in line with “A light touch is the best touch.” If Congress would quit overspending so badly, we wouldn’t be in bad shape, especially relative to the rest of the world.
#2 Comment By TJMO On November 20, 2019 @ 3:47 pm
I should have done my research before I shot off my email. QE purchase of securities has resumed and I missed it.
#3 Comment By VT On November 20, 2019 @ 5:24 pm
TJMO $80,000,000,000 daily in the form of t-bills(created from thin air by the Mandrake mechanism) sure looks like market interference(qe) to me. The government and a private institution (Federal Reserve) are criminally conspiring to steal from you and me.
#4 Comment By TJMO On November 20, 2019 @ 9:39 pm
Definition of QE: [2]