In case you got bored or just missed it, the Chinese last week pulled off their latest version of QE.
As the Wall Street Journal put it: "Central bank dials back rates, reserve requirements, helping extend stock rally,"causing the yuan to settle at "its lowest level in almost a month against the dollar." According the Journal, " China is the latest of the world's big economies to turn to its central bank to stimulate flagging growth."
Given the strength of the dollar, it's a move those buyers at Wal Mart will most likely love.
Couple that with ECB President Mario Draghi's recent comments about more possible QE coming from those quarters and it looks like a good old fashion game of Texas Hold'em when you calculate in the stumbling, bumbling, indecisive leadership at the Federal Reserve. They're all in there.
Of course, soothing investor nerves is always good for stock prices and European, U.S. and Chinese markets showed their appreciation by rallying somewhat. But beneath the rally--like that old saying still water runs deep--angst continues to loiter as this is China's sixth rate cut in a year and global economic growth appears to be more anemic than it was just six months ago.
Over in the option's pit puts were selling at a huge premium to calls on the VIX, the well-known volatility index. Could this be another case of who knows what and when did they know it?
One thing certain about government bureaucrats, they never give up until they usually get it completely wrong.
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