Tiger By The Tail

Print, print, print goes the Fed. Pump, pump, pump go the HFT thieves. And so the bubble gets bigger and bigger and the eventual implosion more devastating. Send the kids out of the room, this isn’t going to be pretty.

Meanwhile the GDP report comes in at -1.0% which for comparison purposes should be -2.0% when the one-time influence of initial Obamacare premiums on healthcare spending is removed. But it’s all weather say the bulls. I say that is the back end of the bull speaking.

I’m pretty sure the Fed knows what it has done, but it is kidding itself that gradually letting go of the tiger will make it easier to deal with. The tiger is going to be angry, no two ways about it.

Anyway, the most hated asset class is getting a little love which is a good thing. A nice short squeeze to say, 120 on the TLT, would be OK too.

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