Federal Reserve

It's ironic that Peter Schiff calls on animal spirits (herd mentality) to explain the stock market. Maybe it isn't animal spirits but rational thought, recognizing that the nominal market is skyrocketing faster than nominal inflation. it's one thing to recognize a bubble. It's another to be able to ride it to its heights then get out at the peak before it bursts.

"But while the Fed was gaining much attention by saying nothing, the Chinese made a blockbuster statement that was summarily ignored. Last week, a deputy governor of the People’s Bank of China said that buying foreign exchange reserves was now no longer in China’s national interest. The implication that China may no longer be accumulating U.S. government debt would amount to the “mother of all tapers” and could create a clear and present danger to the American economy. But the story barely rated a mention in the American media."

But the Chinese have said this before. Words aren't important. Actions are.