(5-1-13) Whatever the Federal Reserve and the European Central Bank (ECB) decide to do this week, there have been great expectations that they will act together and come up with another major shot of pabulum in the Hopium Cloud.
There have been a lot of rumors in the markets during the last couple of days that the Fed and the ECB are going to step up to the plate instead of acting wimpy, which is what they've been doing since the start of the year because they realize that markets need another shot of pabulum to maintain the speculative bubble that the global central banks have created -- the so-called Second Speculative Bubble.
Nobody knows what the plan of action will be -- even though the Fed keep saying they have a lot of "tools" left in their toolbox -- which of course they don't -- since that's a lie. It's not that important what they do as is the degree to which they do it.
If they step up in a bold way, for instance, if the Fed knocks out that quarter of a percent overnight rate that they're paying in bank deposits -- that's why money keeps re-circulating back into the Fed instead of being lent out.