Levin Commentary

    Posted by sbaxman111 on 22nd of Jan 2016 at 09:46 am

    On Wednesday the market rallied ferociously off of its lows do to the Chinese manipulating its markets and the cheer that went up on Wall Street.  Despite the insane rally, it still closed lower on the day

      *PBOC TO INJECT 110B YUAN WITH 7-DAY REVERSE REPOS: TRADER

     *PBOC TO INJECT 290B YUAN WITH 28-DAY REVERSE REPOS: TRADER

       *PBOC INJECTS MOST CASH IN THREE YEARS IN OPEN-MARKET OPERATIONS

    Thursday was the European Central Bank's turn.  Although its Chairman, Mario Draghi, did not cut rates, he reminded everyone that there is no limit to the amount of manipulating that he is willing to do to get what he wants: Higher inflation and higher stocks.

    Why did both of these central banks make the moves that they did?  Why do we now also hear on financial television that the FOMC will not raise rates again this year, and may even cut back to zero?  Because stocks across the globe are falling fast and that makes central planners unhappy.  In fact, more than 50% of the world's “wealth effect” that was created since 2011 has been lost, which is approximately $17-trillion.

     

    With that type of mega-wealth evaporation, the central planning nannies have a lot of work ahead of them.

    Apparently there were rumors of

    Posted by john9o9 on 22nd of Jan 2016 at 05:54 pm

    Apparently there were rumors of a coordinated central bank "intervention".  Fwiw I would think the boyz are happy with jawboning for now and see what that gets them...

    jmho

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!