Madness On Both Ends Of The Acela Corridor

As we said yesterday, the central bank enablers have fostered madness at both ends of the Acela Corridor, and it’s an especially virulent kind of madness because it is two-pronged: The Fed’s torrent of bond-buying and liquidity has unleashed Wall Street speculators and Washington’s free stuff dispensers alike–and like never before.

The stock market has soared owing to the Fed’s $3 trillion injection of rocket fuel since February, as well as the not so implicit reminder that Pusillanimous Powell’s Put is even more certain and potent than the Yellen, Bernanke and Greenspan Puts which had gone before.

Indeed, the Fed’s desperate capitulation after the the indices plunged 28% during the month after the February 19 peak was so swift and abject as to erase every last residue of doubt on Wall Street.



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