Monday, March 26, 2012

More Accommodating

Here we see a Dow and S&P rally.  The world must be roses and unicorns again. 

Maybe.  Bernanke says that "...continued accommodative monetary policy will be needed to make further progress..." relative to the unemployment numbers.  What that means in plain ol' Murikan is that the Fed will try to encourage more consumer debt. 

Here is Denninger's take on that

The Fed position weakens the dollar against the increasingly weak euro.  (Anybody notice that Greek politicians were in hiding during "celebrations" over the weekend?  The celebrations turned into protests.)  This will drive up commodities, most noticeably crude oil.  Metals are rising this morning as well.  Coffee is going up again.  I can stop or cut back driving, but they take away my coffee and somebody's going to pay. 

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