Ok, the Fed says they are going to leave rates low for two years. Big deal. Who didn't know that?
In fact, if you want to know what the Fed is going to do- there is already a blueprint. It is called Japan. Japan has experienced 22 years of dead time. The call it the lost decade(s). Their debt to GDP is the highest in the world at 200%. Unlike us though, the people of Japan own most of the debt. We sold ours to China and the consortium of private and international bankers called the Fed.
So why the rally? Are we getting new jobs? Are we making new things? Has anything changed? This was a typical dead cat bounce on no news. A short covering rally. The trend is down and it will stay down. I guess the only good news is that " We will not monetize the debt" Bernanke says there is no QE3. Yet.
Bet me he is full of shit. President Screw Off will be begging for QE3. Before the primaries. Bank on it.