Central Bank Hand Sitting; People Who Make Up Strange Stories (Lie)
Bernanke and Draghi are wind bags, but you already knew that. Time and time again this space has reminded that QE moves would ultimately have a diminished impact on the fate of the world economy. Both Central Bank chieftains did nothing, though they are ever ready to take action. Markets waited yesterday, closing almost unchanged, to give Draghi the benefit of the doubt this morning, after Bernanke & Co., opted to stand pat. The ECB kept it benchmark lending rate at .75% and announced to plans to buy ECB member sovereign debt. Nada, nothing. Stock futures are down although that’s an indicator of nothing with respect to the outcome of the trading day at the closing bell.
Incidentally, the stickiness of jobless claims holding at near 400,000 remains a problem. From the Journal: “Initial jobless claims, an indication of layoffs, increased by 8,000 to a seasonally adjusted 365,000 in the week ended July 28, the Labor Department said Thursday.” This could mean a weak print on the full-month July jobs data due for release tomorrow morning at 8:30.
It is looking less and less positive that the bulls will successfully build a new base to move ever higher in stocks. But let’s wait until tomorrow’s expected tepid jobs numbers to get a better sense of where this market goes next week.
It was noted yesterday here that $1600 would be an initial support area if NO QE from the Fed and that worked out. Now, with no extraordinary measures (feign surprise) announced by the ECB after the off the cuff remarks of the week before by the ECB president, it appears gold is headed for a near term visit back through the upper rungs of the $1500+ handle. As of today, I still see support in the mid $1500’s.
I went to a Paramus. NJ Chick-Fil-A yesterday. There had to be 400+ people on line. As usual the silent majority turned out when it so desires. Various press reports characterized the Wednesday patrons as “foes” of same sex marriage. No, we are foes of those who seek to abridge 1st amendment rights for merely expressing a preference (you know what I mean if you understand the Chick Fil-A story). Those who went to the restaurant chain are actually not the haters, but the tolerant who represent the vestiges of what’s left of real American values.
From the “weird, it must be a strange coincidence file”: “Batman” Shooter’s Father Was Scheduled to Testify as Whistle-blower in Libor Bank Fraud Scandal http://www.wilmott.com/blogs/irismack/index.cfm/2012/8/2/Batman-Shooters-Father-Was-Scheduled-to-Testify-as-Whistleblower-in-Libor-Bank-Fraud-Scandal …
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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