by Bill Bonner
Weird and Unnatural
NORMANDY, France – First, a quick look at the markets. The Dow bounced on Monday, recovering 239 points of the nearly 400 it lost on Friday. Why the comeback?
[…] The financial press has a ready answer: “Stocks gain with cautious Fed comments,” reads a headline. Yes, dear reader, the Fed is in charge now. At least, according to the press.
Prices are no longer discovered by willing buyers and sellers. They are imposed by a central bank that lives in fear – fear that investors will discover that the recovery is phony and stocks and bonds are not worth what they paid for them.