Greenback Emissions

I heard someone say we are too worried about greenhouse emissions and better start worrying about greenback emissions! Jeez, I wish I could think of clever lines like this.

Anyway, his comment reminded me that I haven't written about something that I think is very important.

The Federal Reserve and the US Treasury have been placing well timed trades in the S&P Futures markets since early March. Some of this you can see on the balance sheet of the Fed. Some you can't because it is being held off-balance sheet.

Such futures action makes it look like the stock market is going to go up. This results is really smart people front running this trend and less smart people putting money in the market driven by herd mentality.

At some point this will stop. Further, at some point those positions may have to be unwound.

What do you think will happen then?

Now that you read this please remember that any information that follows is neither a solicitation to buy or sell securities. The writer of this article may or may not own such securities at the time you are reading this article. And, don't be a complete idiot-- do your own research before you buy financial instruments of any kind.