Fed ‘stimulus’ lost in transit

Another morning another farcical levered ramp in risk markets purportedly on the revelation that the US central bank will not be hiking policy rates soon because the economy is weak.  News this is not.

Evidence of the global slowdown has been plentiful and mounting for months. In classic non-confirmation, transportation stocks are bucking the broader Dow’s lead.  While the Dow 30 Index is marginally higher (.14%) on the week so far, the Dow Transport Index–the companies that actually ship things when they are demanded– remains lower on the day and -3.14% on the week.
Transports disagree
Lest there be anyone left alive who with a straight face wants to assert that perpetual central bank ‘stimulus’ works in strengthening the real economy, we reference here the most recent chart of manufacturing from Japan (the policy grand-daddy of all QE, all the time).

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