Here are the three major news stories that played into the Market on Thursday:
1) Some of the nation’s top bankers met with the White House today. Bloomberg News was sure to point out that the CEO’s all head banks that are making record profits. And, it seems, the media is expecting the meeting between these “fat-cat” bankers and the White House to center on how they could best put that money to work for the economy.
Now, let’s think about this: Yes, the banks are making record profits. Mostly because of the Federal Reserve’s easy money policies. After all, the Banks are clearly not making record profits because of robust economic expansion. In fact, the meeting should be focused on how the Government could spend more frivolously. Furthermore: Isn’t it peculiar that the media seems oddly silent about the impropriety of Big Business colluding with Big Government? Imagine, if you will, the outcry had George Bush met with CEOs of oil companies while they reaped record profits. . .
That being said, I would pay good money to see the interaction between Jamie Dimon of Chase Bank, and President Obama
Top Bank CEOs Meet Obama Ahead of Massive Earnings: Video - Bloomberg
2) Another rally for the S&P. Are the concerns over QE misplaced? Does the market’s performance demand more compliance from the bear analysts? Despite the fact that economic fundamentals completely contradict every rally the market has seen as of late, some people insist the skeptics shut up, and enjoy the ride:
Let me translate: Shut up and get in! (Just ignore the inflationary pressures, poor economic data, diminished household income, and a declining level of economic growth. . . I’m sure those are all anomalies.) The truth is simple: The markets will continue to go up as Ben "QE" Bernanke continues to inject liquidity into the market. After all, that printed money needs to go somewhere. Just, brace yourself for the inevitable end.
3) White is Black, Up is Down, Cats and Dogs are living together. . . MASS HYSTERIA! While we’re on the topic of fundamentals disagreeing with stock performance, take a look at this video illustrating the divorce between reality and perception: (Don't you think this underscores the point that this market rally is hollow?)
Corporate Earnings: Perception Vs. Reality: Video - Bloomberg