TheDumbMoney (58.55)

How People Keep Misreading the Fed

April 04, 2012 – Comments (2) | RELATED TICKERS: SPY

So I do some blogging here now and some on my new blog "The Dumb Money," for the benefit of Twitter.  Here is a post I did there today:

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So the dominant reaction I am seeing to the Fed’s announcement (via its minutes), that QE3 is unlikely, is summed up by this tweet from a man I call The Reformed Stockpumper, Henry Blodget:

Wall Street drug addicts dismayed to hear Fed may not pass out any more tubs of free heroin. So market crashes…

This perfectly encapsulates how many professionals, traders, and partisans continue to misread the Fed.  Yes, the market dropped yesterday after the release of the minutes.  Yes, it’s dropping even more today.  But two comments are in order....

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For the rest, see here. (If you think it's totally inappropriate for me to link to an outside site here, don't hesitate to let me know.  I might ignore you, but I might take it under advisonment if you tell me that I'm turning into Turnkeyoilsocks or one of those other non-substantive self-promoters.)