FED Stoking. Inflation

Yes, the FED is worried about inflation. They said so in the policy statement today after dropping the FED Funds down to 2.25%. They are so responsible that they cut only 75 basis point. The Markets which currently own the FED cronies wanted 100 to 125 basis points. That really showed the markets didn't it?

The markets rallied on this crack, without thinking hard about the continued destruction of the value of the dollar, continued rampage of the oil prices, and continued deterioration of average American's purchasing power.

The FED has been on a mission. They support low inflation and shun greedy Wall Street Bankers. Their mission statement of increased transparency is on target. Who the F___ are we kidding! The FED has single handedly created destruction of the value of the dollar, stoked inflationary pressures globally, and revealed that they are pandering to the rich and greedy wall street bankers by bailing out Bear Stearns. Additionally, it is increasingly apparent that the FED has become quite the technical day traders as their "interventions" seem to come at key S&P 500 index support levels or at around options expiration times, eliciting huge short covering rallies. All of this may seem like that the market is on the road to recovery but if you look deep inside will reveal that this will cause a bigger market crash once the FED runs out of their manipulative lies.

The FED asserts that allowing Bear Stearns to fail would have been disastrous to the US banking system and the global economy causing cascade failures of other similar banks who depended on Bear Stearns for clearing. But the truth is that allowing Bear Stearns to into bankruptcy, which they rightfully deserved to do so, would have revealed that the off balance illiquid toxic derivatives had no market value and hence forth cause major catastrophic repricing and scrutiny of all major US banks. The banks are hiding these things off balance style using mythical fantasy pricing models which in real market would yield a fat zero. This is one of the reasons why Bear went under in addition to the smart money making a run at the bank. The FED could not absolutely allow this to happen for they would be found culpable in this act as well. The FED has the authority but not the dignity to push the banks to mark to market these illiquid issues to stem this credit crisis. How many stick saves and lies in the market place can we stand?

Shame on Ben Shalom Bernanke. He is using his playbook devised in the comfort of academia about how the "next" depression can be avoided and he seems to be going down his list of things to do step by step. The problem is that most of the time PhD thesis is not very applicable in the real world.

We have Jim Cramer jumping up and down like a monkey today gleefully proclaiming that the market bottom is in. How many times is this ass clown going to be allowed to spew this none sense? Isn't it bad enough that he recently advised one of his Mad Money callers against selling Bear Stearns one week before the total collapse? Where are the cops?

The US does not have a responsible fiscal policy. We have a support the greedy Wall Street Banks policy. The bail out of the stock market and Bear Stearns will cost the US tax payers trillions of dollars in the future and cost our offspring's future. Ben Bernanke must be stopped in his irresponsible attempts at pandering to Wall Street and destroying America's future.

Today's rally may have some legs as it has given the bulls some hope. Don't expect however, that the bear market has ended. The problems still remain unsolved on the credit front and we are entering a recession that will be longer and deeper than anyone has imagined. Additionally, given the fact that Ben has been using his playbook for Depression, we most likely are headed that way right now. That is probably why Ben doesn't give a hoot about inflation or the value of the dollar.