The December market meltdown spooked the Fed enough so that it changed its tune about the balance sheet bloodletting being on autopilot. “Autopilot…autopilot…autopilot…” had been the zombielike mantra whenever any financial infotainment reporters asked the Fed about it. Which was almost never to begin with. There was a kind of conspiracy of silence. No one wanted to awaken the sheep.
But in October, the pressure of that $50 billion per month in Fed balance sheet reductions started to cause pain. Since then, the mouthpieces of the Primary Dealer mob and a few buy side behemoths have regularly been trotted out to bleat about it to their breathless captured media crowd.
Before that, while I had been warning you about what would be coming for a year, the Wall Street media remained dead silent. Apparently they had been read their rights. As in, “Anything you say, can and will be used against you.”
The dealers and a few sharp professional investors knew, but they didn’t want others to know, particularly clueless whale institutional investors who think that the economy and the trend of business drive stock prices.