Pumped Stocks Have Yet to Glimpse GDP Slowdown

Stocks were struggling to get airborne late Sunday night after dive-bombing the tarmac Friday on news that the U.S economy had created a measly 120,000 jobs last month. Index futures traded just briefly on Good Friday before electronic markets closed at 9:15 a.m. for the holiday, but that was long enough for DaBoyz to take stocks down to fire-sale levels on near-zero volume. The E-Mini Dow futures plummeted 120 points in less than two minutes, setting the glum tone when trading resumed Sunday evening. However, our hunch is that shares will not go much lower on the opening, since the dirtballs who work the night shift are so good at shaking down the rubes on ostensibly bad news.  We say “ostensibly” because, for every trader who was disappointed that the alleged economic recovery appears to be losing steam, there were undoubtedly others who saw a new excuse for yet more Fed easing.

A cynical calculation, to be sure, since everyone understands by now that even though the central banks have been running wide open for years, it is not benefiting employment, only stocks. Not that Wall Street cares.  Who needs jobs when it’s possible to promote runaway asset inflation with less effort and at a fraction of the cost?  Granted, that’s not the way Mr. Obama and his supporters on Capitol Hill would prefer it, since higher share prices alone are unlikely to fool voters come November. But for the time being, a rampaging stock market still holds the promise of reviving job creation and perhaps even of causing home prices to start recovering.
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