Moral hazard continued this week. Monday, stocks fell 3.7% in Asia, 4.1% in Europe, and 3.9% in the U.S. on mammoth volume. The VXO fell 8% to close at 67.89. The 10-Year U.S. Treasury bond yield plummeted 19% to close at 0.76. Precious metals and their miners shot up 7%. The Dow Jones Industrial Average closed below 19,000 while the NYSE closed below 9,000. The Fed exceeds its authority and begins buying corporate bonds.
Tuesday, stocks shot up 5.0% in Asia, 8.4% in Europe, and 10.0% in the U.S. on mammoth volume. The 10-Year U.S. Treasury bond yield moved up 6% to close at 0.82. Precious metals shot up 6% and their miners gained twice that amount. The Dow, NASDAQ, and NYSE closed above 20,000, 7,000, 9,000 respectively. Apple rose above 240 and IBM ended above 100.
Wednesday, stocks rose 5.0% in Asia, 3.3% in Europe, and 3.1% in the U.S. on mammoth volume. The 10-Year U.S. Treasury bond yield gained 5% to close at 0.86. Precious metals gained 1% but their miners shot up five times that amount. Dow closed above 21,000.
Thursday, stocks gained 0.3% in Asia, 2.4% in Europe, and 5.8% on mammoth volume. The VXO fell 9% to close at 64.34. The 10-Year U.S. Treasury bond yield fell 5% to close at 0.81. Dow, S&P 5000, NYSE closed above 22,000, 2,600, 10,000 respectively. Apple rose above 250 and IBM ended above 110.
Our traitorous government did it again. As with TARP in 2008, they cited “to big to fail” and enthusiastically passed a bailout bill to rescue the 1% who feasted on stock buy-backs rather than handle their balance sheet responsibly including bloated corporations, the banks, and hedge funds, at the expense of the U.S. taxpayer. Congress also encouraged reckless personal finance by sending paychecks and token payments to U.S. citizens.
Friday, stocks gained 1.1% in Asia but fell 3.9% in Europe and 2.4% in the U.S. on massive volume. The VXO moved up 7% to close at 68.76. Precious metals miners dropped 7%. Dow and S&P 500 closed below 21,000, 2,500 respectively. IBM closed below 110.