by Tyler Durden
It’s summer. Markets are supposed to be in the doldrums. But, that characterization hardly fits thus far this summer. What is different this year? We are nearing a possible inflection point in terms of Fed actions. The mere suggestion from the Fed that something is going to change is enough to supercharge markets, either up or down. If anyone was not convinced of market dependence on liquidity (and not fundamentals), the last thirty or so days should have clued them in. The Fed’s charter never included keeping markets levitating beyond where they should be. Now, at least de facto, it does. The Fed surrendered whatever independence it supposedly had. It is now just another tool of the political class. Stay tuned, this story has hardly begun.