Breadth closed at only 2.68:1, decliners, not near high enough to give a lot of weight to the beginnings of a larger sell-off in the works
Lets think of that Apple pie as the value of Dollars in circulation. As the FED prints more Dollars, the pie stays the same size as each dollar is worth less because the FED is printing more Fiat money, add not adding value or worth into the system just diluting the value of each Dollar. Just as in Apple pie, all the FED is really doing is making each slice smaller, so there is more slices to go around, and hoping people do not notice the size of there slice is smaller, because if they do, there might be riots on the streets. fortunately QE2 is not escaping the worlds view and overseas Governments are standing up and sounding alarms, unlike what happened with the implementation of QE1.
Just today, China’s Dagong Lowers U.S. Credit Rating on Fed Monetary Policy
The credit outlook for the U.S. is “negative,” as the Fed’s plan to buy government debt will erode the value of the dollar and “entirely encroaches” on the interests of creditors.
This move could be the first towards more Credit Rating Agencies following with lower their outlooks that could result in sending the Dollar into a tail-spin and Yields on our treasuries higher as the world senses major inflation on the immediate horizon that would squash any hope of growth here in the United States and send shock waves around the globe as other Countries try to counter-react with their own Currency to save their import/export markets. Lots all hope this is only a political move and not the start of something larger
Enjoy your pie, what little is left!!!!