Wednesday, July 4, 2007

Rebuke to The Fed

The BIS pulls no punches:

Clearly the markets and economy are defying gravity in the face of the massive housing bust thanks to the on going priming of the liquidity pump by The Fed and Treasury. Don't fight the tape is the old rule and a good one, or as Keynes said, 'the markets can stay irrational longer than you can stay solvent', if memory serves me correctly.

S&P futures up 2.25 tonight... looks like the gravy train continues on.

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