FED SIGNALS IT WILL NOT "TAKE AWAY THE PUNCH-BOWL FROM THE PARTY" AND RALLIES THE ASSET MARKETS

THE TELEGRAPH: Federal Reserve [BULLARD] hints at extending quantitative easing programme as markets recover from another day of turmoil

UPDATE: FROM ZERO HEDGE: 'Welcome to the Dow-Data-Dependent TM Fed. Because What a difference 1,100 Dow points makes!"

UPDATE: VIDEO OF BULLARD HERE.

WIKI: William McChesney Martin, Jr. (December 17, 1906 – July 27, 1998) was the ninth and longest-serving Chairman of the United States Federal Reserve Bank, serving from April 2, 1951 to January 31, 1970 under five presidents. 

HE FAMOUSLY SAID:

The job of the Federal Reserve, he famously said, is "to take away the punch bowl just as the party gets going,"[3]--that is, raise interest rates just when economy reaches peak activity after a recession.

TODAY - AS THE CORRECTION CONTINUED TO PICK UP STEAM, THE CURRENT FED CHICKENED OUT AND SIGNALED IT WOULD LEAVE HE PUNCH-BOWL AT THE PARTY.

WHICH MEANS THE ASSET BUBBLE WHICH HAS ONLY BENEFITED THE VERY RICH - WILL RE-INFLATE THE LITTLE IT LOST.

UNLESS THE HINT IS TOO LITTLE, TOO LATE.

YES, YES. WE KNOW, WE KNOW: THE ECONOMY HASN'T YET REACHED PEAK ACTIVITY NOR IS THE RECESSION ANYWHERE NEAR BEING OVER.

WHICH REALLY TRULY PROVES THAT IT'S TIME TO END QUANTITATIVE EASING BECAUSE IT REALLY TRULY FAILED TO END THE RECESSION.

WE NEED A DIFFERENT PUNCH BOWL: LOW/PRE 2001 ENERGY PRICES AND ACROSS THE BOARD TAX CUTS.

IOW: IT'S LONG PASSED TIME THE PEOPLE HAD A LITTLE OF THE PUNCH ONLY THE VERY RICH HAVE BEEN DRINKING SINCE 2010!

IMO, THAT WILL LEAD TO A BROAD-BASED RECOVERY.

STAY TUNED...