I constantly make the case that that what is called a bubble in asset prices is not a bubble at all. It is a mature political agenda. It has been a very successful political agenda. In forty years this will all be common knowledge.
What we have today is the equivalent of a stock market war room.This is constant communication, outside of the formal system, with all participating doing all possible to keep stock prices moving higher. This can be formal or informal but it is happening. If one average is weak, there is always strength in another. If the fangs are under pressure, the energy sector or something else is getting its shorts squeezed. If attempts to elevate the Dow are not quite enough, notice that the Russell 2000 is unusually strong. It is hard to goose the Russell 2000 just enough. Just a little buying sends it up our of proportion to everything else. There are virtually no organic market forces in play. Yes, when the market has a bad day, the fix is orchestrated and is in place when the market opens. If there is a good day, the overnight dialog is devoted to keeping it going. Whatever causes weakness in stocks today or any other day will be dealt with before the market opens again. If it is weak again efforts to turn it back up will be redoubled. If all else fails central banks will coordinate their efforts and buy enough to stall the decline. This is not a bubble and stock prices will be managed as long as possible.
This is Fantasy Free Economics. All over the globe, investors and traders are treating stock prices as an organic happening. Just know that Fantasy Free Economics suffers from no such delusion.
This is a timely Curbside Jimmy tune. The scene shifts from a regular swamp to the big swamp in Washington D.C