Rick Santelli Features My Cash to Primary Dealer Chart on CNBC – Video |
Rick Santelli Features My Cash to Primary Dealer Chart on CNBC – Video | The Wall Street Examiner
This important chart is worth looking at and belongs to Lee Adler at the Wall Street Examiner with permission. Tells a lot. I don't like Santelli when he said borrowers bet and lost in the housing bubble. His side bet and won. That is the real truth. Most everyone else was duped.
But he gives a good video explanation of the chart. Notice that the Fed balance sheet correlates with the S & P rise almost perfectly. Especially lately they seem in lock step.
You can see the cash given to primary dealers and how that has expanded and how the S & P has expanded with it. Pull the punch bowl and stocks will tank. I think they are way overvalued. JMO as I am not a financial advisor in any way.