What to do today...

[Grieve]

I was listening to CNBC on my way home from work, and I'm beginning to think that what the Fed did was actually pure genius. It doesn't really matter how much they are pumping into the system right now - the market now knows that the Fed is committed to printing as much money as it necessary to force a recovery. Someone on Fast Money asked "what happens if the job numbers tomorrow are bad", and the reply was "who cares?". The Fed is going to keep on injecting money into the system until they improve.

It's a little like when the bank bailouts came in the depths of the financial crisis. There were still a LOT of terrible things that could happen to the banks (still are), but it didn't matter. The government had given the signal that they would do whatever necessary to save them. After that you couldn't short them, and that was the start of the 80% stock market climb ever since.

I think that will happen now as well. How can you short the market when you know that the Fed is going to keep pumping money in as needed? Whatever the long term inflation risks (and they are legion), in the short to medium term, the market (and commodities) are going to soar.

I'm all in!

And Maul, yes, that would be a bubble. Who cares? We're all going to ride it up, and calculate that we can jump off just before it pops!