Scaramouche, Scaramouche, will you do the Fandango?
Nothing really matters, anyone can see, nothing really matters to me – any way the wind blows. That’s right, I am now resorting to random gibberish in the hopes of getting a better understanding of the markets. Random gibberish is exactly what we got in the Minutes of the Federal Reserve’s Jan 26th meeting, that were released yesterday at 2pm. My extensive commentary to Members is available over at Seeking Alpha, but it loses a bit without the color-coding, which they do not support (sorry).
It was really the same old song and dance: "The pace of the recovery was insufficient to bring about a significant improvement in labor market conditions, and measures of underlying inflation had trended downward… the Committee reiterated its expectation that economic conditions were likely to warrant exceptionally low levels for the federal funds rate for an extended period…"
Nothing to move the markets over which means, of course, we keep going up since up is the natural direction of the markets these days as we ride the ever-increasing tide of easy money right to the stratosphere. To summarize the Fed’s statement, it was something like: "Hast Du etwas Zeit für mich, dann singe ich ein Lied fuer Dich," which roughly translates to:
You and I in a little toy shop
Buy a bag of balloons with the money we’ve got.
Set them free at the break of dawn
‘Til one by one, they were gone.
Back at base, bugs in the software
Flash the message, Something’s out there.
Floating in the summer sky.
99 red balloons go by.
Panic bells, it’s red alert.
There’s something here from somewhere else.
OK, so what have we learned from all this gibberish? Well, for one thing, we’ve learned that Nena is HOT (and still is)! I saw her at a club in Amsterdam around the time of that video and I was totally in love with her – had no idea what she was saying but I loved the way she said it. Who knew the lyrics were deep as well?
As for B-B-B-Bennie and the Fed? We (and he) have learned nothing at all. The overriding theme of the minutes were along the lines of "Inflation, what inflation? I don’t…