When the Fed came up with its alphabet soup of mini bailouts for Wall Street banks back at the beginning of the year, these programs were touted as being temporary measures to stave off the credit crisis and followed the Fed’s flawed belief that the crisis would be short-lived. Today, those programs were extended (again). We told our readers that these programs would become permanent in time and they are doing exactly that. This means the inflation created by them is now baked into the cake.

In market news, stocks have been in rally mode since our last issue of the Centsible Investor was released just as we forecasted: “Our view right now is that the major indexes will see a brief rally over the next few weeks…” Become a subscriber to find out what happens next! In just 8 months, this fast-growing publication has had a stellar track record of picking tops and bottoms even though that is not it’s primary objective. Find more information visit the link below:

http://www.suttonfinance.net/newsletter.php

While all this has been going on, we have watched oil prices continue to fall; although not as precipitously as previously observed. The odd thing is the logic going on here. Follow along for a second.

1) OIl prices are going down – the main reason given is worries about economic growth.

2) Stock markets are using this ‘news’ to rally.

3) Stock prices are generally forward indicators of the state of corporate earnings.

4) If the economy is slowing, we would expect earnings to decrease so why all the excitement on Wall Street?

Keep your eye on the ball folks; things are about to get very interesting; as if they haven’t been already.