Dow down almost 300 points at this moment, Fear of a Fed created bubble chills markets

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In the attached article from CNBC the point is made that the real bubble is likely an inflated confidence in the Federal Reserve.That come what may, the Fed will intervene in markets and buoy them. So what if stocks are over extended, Yellen and the FOMC will save the banker’s posteriors. As we’ve said before this sounds very much like “housing prices always go up” to us. If sentiment regarding the Fed were to change, if traders were to fear that things were bigger than the Fed, a downdraft could be wicked.

We’ll see. There’ve been many blips over the past 5 years and for the most part the pro-Fed folks have been right as far as equity prices are concerned. (Little else.) Maybe this is just another blip on the way to Dow 20,000 and beyond.

But maybe not.

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CIA director apologizes after government spooks snooped on US Senate computers

Are oaths of office just for suckers these days?

Are oaths of office just for suckers these days?

Oops. Our bad.

Funny, the Senator who is most angry (or at least drove the inquiry of CIA actions) was Dianne Feinstein, Ms. Police State herself. She sure does hate it when she’s spied on. Now other Americans? Not such a big deal.

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Bizarre argument: Legalizing pot will make income inequality a lot worse

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Jake Novak at CNBC does get one thing right in this very strange and I would say ill informed op-ed. Even though he says from the outset that he is actually for legalization he explains why legal pot will nonetheless contribute to income inequality. I think his concerns for the most part are not really concerns. At least not on a societal level.

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Not a joke: Grover Norquist is going to Burning Man! (Video)

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For those of you who don’t know Burning Man is an annual festival held in the Nevada desert where pretty much everything goes. There are drugs. There are dudes wearing boas. There is electronic music and strobe lights. There is nakedness. There is a lot of sunscreen. And for the most part it is peaceful and from what people tell me, a lot of fun.

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Greenspan: “We just do not know how this thing is going to work out when we begin to tighten.”

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An interesting quote above to be sure, and former Chairman Greenspan is absolutely correct. We are still expanding the Fed balance sheet. We are “tapering” but we are still pouring money into the global economic system. We don’t know what will happen exactly when the Fed goes neutral or starts to raise interest rates.

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Cuomo received big donations from companies which got big tax credits

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It is New York state. I just assume when I pass over the state line that it’s pay to play there. Like Mexico. So what if the governor received over a half million in contributions from companies which later got big tax credits. No big deal.

Yet some still wonder why people are leaving the state.

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Amash’s Likely Primary Win Will Vindicate Libertarian Politics

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I actually don’t think libertarian politics needs to be vindicated. It is the future. At least for a large part of the electorate.

Amash is the real deal. He explains each vote he makes on Facebook. He is an ardent critic of big government and of crony capitalism specifically. He is staring down Karl Rove and his money machine in a primary battle as I write this. He was once called an “asshole” by Speaker Boehner. What is NOT to like about this guy?

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