Lies live a long time but they eventually die. The punishment for believing lies is staggering and lethal for many. Debate could go on a long time as to which is the biggest lie of the century.

The notion that in representative government representatives serve constituents can be believed as a lie but that belief can be due to a general lack of awareness. Believing that the Federal Reserve has been tirelessly trying to do good things for the economy is another story.  Anyone with half an educations understands the difference between an independent variable and a dependent variable.  The distance a car can drive is dependent upon how much gas is in the tank. Only a fool would claim that putting a bigger gas tank on a car and filling it with the same amount of gas will cause the car to go farther.

People have believed that if the Federal Reserve pushed up stock prices, the general economy would expand. In the end stock prices are determined by nothing other than the profitability of the underlying corporations. Believing this lie will result in suffering that few can currently fathom.

There has never been a chance that goosing asset prices would do anything other than pay the people who own the assets. Federal Open Market Committee members know this. No one with as much intelligence as these people have could possibly believe such a silly notion. I will say it again. When a lie is told there are two guilty parties. There is the liar and then there are the folks for whom the truth is not good enough.

The stock market was totally managed during 2015, 2014 and 2012. I was wrong in forecasting that the averages would close positive for the year. The effort was made but it failed. I am absolutely sure 2016 is beginning with plans to launch a new leg to the bull market. Now I honestly don’t know that the consortium is strong enough to pull it off.

A sell off on the first trading day of the new year is to be expected. This is to draw in as many shorts as is possible. I am not sure the following squeeze will go as planned. Panic may set in. The public is growing more and more distrustful. Many companies are beginning to experience losses on their buyback programs. Reality may be setting in. The Federal Reserve wealth effect lie is on life support now and somebody may pull the plug.

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