Confidence

Its everything. Without re-establishing CONfidence back into the markets one cannot get the consumer back into spending and making that GDP move up. Without velocity of money there can be NO movement in this liquidity driven recovery. CAN you change the equation of velocity by the current monetary policy? Maybe. Perhaps you can convince the populace that the best barometer of the health of our economy (the market)is healthy again by the current POMO/ponzi. In fact it may be that the Fed doesn’t even care if many on the inside realize the market is completely fluffed by the Fed…….just as long as they know the market is UP.

The only thing that we are interested in is what path this manipulated/monetary/liquidity lead “recovery” in the market will take. If the goal of this entire monetary exercise is to keep the animal spirits alive in the public with a strong appearing stock market then one does not want to fight the fed by shorting the market running into June. On the other hand this entire bull is getting very long in the tooth. If you remember how bulls end then you also know that we haven’t seen the volatility yet marking the end of the bull. ESPECIALLY in precious metals.

One reason that many here are in precious metals as an investment is their ability to retain value as a currency. Right now you really haven’t seen the final stages of the world fiat death spiral. When that fear truly hits there will be an explosion in the PM’s.

Meanwhile feel free to gamble and play your Biotech specs with the hot money. Just remember what value is.

Read more at Great Depression 2