(For those who say I just don’t get it…get this!)
I have reiterated far too many times to count, the markets, no matter what the so-called “smart crowd” says. If The Federal reserve isn’t partaking in the markets through all iterations of QE (quantitative easing) past or present. “There is no market.” Period.
Just to show you the power of one man, I post the newest example below. (I know there’s many that don’t care however, as I keep saying, if you’re an entrepreneur of any stripe. What happens in the markets is not to be taken lightly. Regardless if you have money at work there or not.)
That move is based on nothing such as “market fundamentals” as in profit. It’s a reaction to funny-mentals such as “This isn’t funny – it’s insane!”
However, the reason my interest (pun intended) was tweaked today a little different from other times was what happened at the Federal Reserve itself within the body politic.
Far many more board governors at the reserve have raised both concern as well as dissented in opinion from the chairman as seen with the release of the FOMC (Federal Open Market Commitee) minutes yesterday. Giving some concern to market players that the Fed. just might be serious this time in reducing the size or taking away the a fore mentioned “punch bowl” known as QE.
However in a seemingly surprising turn of events. Last night, in a speech the chairman whom was slated to give a speech not pertaining to current Fed. policy. (That was the general feeling from market players) It seems gave exactly the right off-handed comment in an answer to a question that signaled to the markets: “Don’t worry – The bar is still open!” The result that the Fed. was “going nowhere” has produced the above chart.
Markets, currencies, and commodities around the globe overnight moved – everywhere. It would not be too far of a speculative guess that his words in an after hour’s speech with an off-handed remark moved TRILLIONS..yes, let me repeat – TRILLIONS of dollars.
People believe the stock market for equities is huge but always forget the currency markets dwarf it by exponential numbers. Not percentages.
Again what caught my eye was not the markets. (It’s only the seemingly 10 thousandth time) It was the resignation of one of the actual Fed. board members this morning.
From the Fed itself:
Elizabeth A. Duke submitted her resignation Thursday as a member of the Board of Governors of the Federal Reserve System, effective August 31, 2013. You can read the full text here.
I don’t think you’ll find outright causation as in “That’s it! I’m outta here!” for the sudden departure. I’ll wager it’s all stated as things like: (my words no one else) “Had a great time, want to spend more time with family.” etc., etc.
I must say the timing of such a thing is quite striking in my view and, something one needs to keep an eye on.
People don’t leave presidential appointed, high-ranking seats of power for no reason out of the blue catching all watchers off guard. Something just looks out-of-place here and just might be more than meets the eye.
What it means in the coming day, weeks, or months is anyone’s guess. We’ll just have to wait and see.
© 2013 Mark St.Cyr