We decided to wait till the FOMC meeting to release this week’s letter so that we could capture the most important event of the week. It’s not that we didn’t expect a few of the tech giant earnings would be painted with bullishness, but we felt maybe the earnings didn’t really matter.
With the equity and bond markets struggling a bit this week, it didn’t surprise us that the large institutional banks decided to announce a juicy share buyback and dividend increase, just to boost pessimistic spirits. This all on the heels of last week’s announcement by the FED that all the banks passed their stress tests. Gee go figure, we mean how could they fail considering 10 years of ZIRP and QE and $2.4 Trillion in excess reserves! Any way you, our dear readership knows full well our disdain for central bank manipulation, so to add to this and to allow you to improve your central bank understanding we are going to provide you with a link to the not even covered by media, hearing on monetary policy and trade.