As soon as some major institution releases information showing that the economy is slowing, Wall Street jumps.
Does this mean that the interests of Wall Street are against the Interests of Main Street? Yes.
It’s not just Main Street, USA. It’s Main Street, China. A Reuters story announced today:
(Reuters) – World shares pushed to three-week highs on Wednesday as weak Chinese data sparked talk of monetary easing in Beijing, while the dollar dipped as markets awaited minutes from last month’s Federal Reserve meeting.
Europe’s broad FTSEurofirst 300 .FTEU3 share index was up 0.1 percent by 0745 GMT (3.45 a.m. EDT) and the euro edged off a three-month low as investors shrugged off falls in French and Dutch manufacturing data and a rating downgrade of Italy.
The focus was instead on the Fed minutes, due after the European market close, and on comments from an ECB policymaker on Tuesday that the bank plans to keep interest rates low for more than a year.
In Asia, Chinese shares had risen sharply with traders citing talks the central bank might ease policy to boost growth after the country’s exports fell for the first time in 17 months.
Stock market investors care about the bad news in Europe, the United States, and China. They care deeply. The looming decline of all of these economies will let central bankers inflate with abandon, just as they have ever since 2008. Inflate! That is music to the ears of stock market investors.
Of course, it’s not called inflating. It’s called easing.
It’s not called counterfeiting. It’s called accommodation.
It’s not called debasement. It’s called active monetary policy.
The worse the economy gets, the better it is for Wall Street . . . until it gets really bad. Then Wall Street rolls over and plays dead.
Wall Street wants counterfeiting by the FED. So do Keynesians. The word “taper” terrifies Wall Street. It terrifies Keynesians, too. And as for “exit,” Wall Street and Keynesians unite: “No exit!”
That’s what the federal budget deficit offers: “No exit.”
That’s what the unfunded liabilities of Social Security and Medicare offer: “No exit.”
That’s why the Great Default is coming.