It is the unknown which creates ghosts of substance and there are certainly a great number of them floating about these days. My children are full believers in things-which-are-not-there and the world is reinforcing these kinds of beliefs at the moment. It is quite difficult to be a realist when the reality is shifting. On that note, Missmc thinks perhaps a remake of Twin Peaks is in order - we need Agent Cooper on the case of the disappearing banks, and, we need the Log Lady to orate the future for us again. Let's call the show "Deep Valley".
Monday, 26 January 2009
Mondays are filled with anticipation as the behind-the-scenes bank wranglings usually provide a cliffhanger for the Monday markets. This weekend seemed a bit quiet and the markets are responding in a kind gentle positive way. Many kinds of cognitive illusions are conjured daily and shuffled and reshuffled to great effect these days. A treatise on the mechanisms of these devices is well in order in relation to the investments arena - an update of sorts would be interesting. The chatter behind the scenes has grown several marvelous constructs in relation to the doomsday-which-cometh. One which keeps fascinating me is an idea that the U.S. Fed has been propping up the stock prices of various financial institutions by purchase interventions. This is a theory of old from the 90's which has popped up again in the current crisis. What and how much the Fed is doing behind the scenes is a topic of much speculation. The Fed is meeting this week and is expected to make an announcement of little interest on Wednesday as interest rates have no where to go. In late February, the Fed is expected to give information on its closed door sessions it has been conducting. Whether this is conspiracy theory nonsense, or, will reveal things the public is not particularly charmed with is not the point. The point is more that there is a general feeling out there that the U.S. Government is doing something that know one knows about and no one can see. That is the real to some, whether it is real or not.