DJIA update

djia dec 11 2012

This may be it. It certainly looks like a nice a-b-c correction that could be complete. Tomorrow we will have the Fed. at 12.30 o’clock. According to a Bloomberg article 48 out of 49 economists believe the Fed’s FOMC meeting tomorrow will announce additional easing on a massive and open-ended basis. This is the definition of insanity. If something does not work , keep doing it in the hope of a different result! The Fed’s balance sheet is expected to reach 4 trillion in the next little while. All of this largely due to the double and contradictory mandate of price stability and full employment first mandated in 1977 just 36 years ago and never tested. Then there is the fiscal cliff which is little more than a red herring on a similar scale as Y2K. The slightest disappointment from these two factors or from any other issue could do the trick. The high today was 13306.