The Irresistible Power of Funny Money

by Rick Ackerman

With the tech stocks in a funk, and the shares of biggies like Microsoft and GOOGL getting shellacked on Friday, the Dow Industrials still managed to eke out a small gain. This attests to the irresistible power of funny money and its role in keeping the bull market alive no matter how menacing the underlying problems. A week earlier, the broad averages similarly flouted economic reality, rising toward record highs even though earnings reported by the biggest banks were scary-bad. It wasn’t just that the banksters had had a bad quarter, but that their future prospects look as bad or worse.

Continue Reading at…