Political Dirty Laundry Clouds Market Waters


Author Larry Berman

Posted: 20 Apr 2012 re-posted from etfcm

The noise factor remains high—specifically coming out of the IMF. If I had a wish list for the markets it would be for public officials to stop washing their dirty laundry at the markets expense. Geithner was clear this week the US would not be putting up more money, while Legarde insisted the IMF needs more. Just wait until Romney and Obama go at it over the debt ceiling and balanced budgets heading into August when the Republican National Convention will kick off the wave of focus back on just how poor the US fiscal condition is.

They can and will continue to monetize and keep interest rates low until at least Jan 31 2014 when Geithner’s current term ends. It seems clear that if Yellen takes over, she will take over the printing press. We heard from reliable sources she is taking helicopter piloting lessons as we write. We expect to see 1400 before the support in the 1340 area is tested, but odds are waning that we can see new highs in this rally phase.

 

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