The Fed believes that the only alternative to a U.S. economic recovery is the complete collapse of the global financial system. Pretty high stakes... The Fed also believes that the key to a U.S. economic recovery is a rising stock market.
Put two and two together. The Powers That Be absolutely will lie, cheat, steal and bomb -if necessary- to achieve their goal of a U.S. economic recovery. In their minds, they have to, they think they're saving the world.
Manipulating the stock market, inventing bogus numbers, feeding talking points to a compliant financial media... a small price to pay, considering the alternative. When the time comes for POMO and QE to end, Ben and TPTB will have a new trick up their sleeve to keep the markets happy.
That said, I still - perhaps foolishly - believe there will be tradeable short term moves in the market. I sold out of my longs a few days ago, expecting a pullback to 1260 or so. We'll see..
