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Not surprisingly, Fed Funds Futures have moved back to reality, pricing in a 90% chance that Bernanke will NOT raise interest rates this week.

I have focused on this current mania of Fed Centricity as one of the major risk factors to the US stock market. We have the likes of Larry Kudlow and Vince Farrell on CNBC parroting whatever it takes to push the Federal Reserve to do something that helps prop up the US stock market. Three months ago it was give us shock and awe, cut, cut, cut . Today, it's the reverse, hike, hike, hike. Its manic, short term, and unsustainable behavior.

Government intervention is not the answer to our problems. This is America - the great bastion of capitalism, not a Keynesian social net.

De-leveraging and saving continues to be my investment strategy of choice, until all of this nonsense clears itself from our screens. The new range I am using for the S&P 500 is 1311-1340.
KM