With First Shot, Fed Blows a Hole in Its Foot

Index futures were inching cautiously higher Sunday night, a predictable reaction to Friday’s hard selloff. DaBoyz are likely intent on distributing as much stock as they can before Monday’s opening, since ‘good’ news to trigger off a short squeeze is apt to be scarce. Meanwhile, far from reducing uncertainty, the Fed’s decision last week to walk the walk has only clouded future monetary policy, since any further tightening would be economic suicide. Even if you accept that America’s fraudulent recovery can withstand a turn of the monetary screw, China, Europe and Japan surely cannot. What if U.S. stocks should start to fall in January?  Will the Fed reverse course and loosen with negative interest rates?  Hey Europe, how that’s working for ya?