Friday, September 16, 2011
Briefly: Why did the markets spike yesterday the 15th when every piece of economic news released was either downbeat or depressing?
Well.. Our "wonderful" nation--the US, along with Japan and Switzerland and Europe's bankers decided in unison to pour Lots and Lots of taxpayer money that should be going to the people, into the stock market instead.
Here's the Official Press Release: "The Governing Council of the European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year."
European banks were desperate for US dollars to complete banking deals based in US currency and US banks were rightly scared to lend the European banks money because they're pretty much all insolvent.
Thus, this parlor-game trick.
So that explains the spike... Investors love fresh money into the market like maggots love feces. And every other global and domestic economic reality comes second to profit-taking.
Posted by Susquehanna at Friday, September 16, 2011