I do not usually quote other authors’ posts, but after today’s run I do not know how to put it in better words:
“At today’s rate of market melt up, we will hit Dow 36,000 in 332 days, or on March 12, 2011. This should occur a few days before Bernanke finally agrees to raise the discount rate to 0.50 bps. Also, at today’s rate of price change, we will hit $715/bbl on the same day. We are confident that gas at $30/gallon will cause the Fed Chief Execution Officer to evaluate his conclusion that his brilliant monetary policy is not causing the single biggest asset bubble in US history. Last and not least, total US Federal debt on that day will be about $14.5 trillion, and when adding all the off-balance sheet items, should hit about $120 trillion. We have less than a year before total Alice In Wonderland oblivion. Oh, and since the latest episode of market melt up began, the SPY is trading as a 4x leveraged ETF on the XLF. Ignore that this statement makes no sense. Just buy. Buy everything. Then repo it to the Fed, they are particularly receptive to used single ply toilet paper, and then buy on repo margin. Insanity is here.” – ZeroHedge
