Morning Journal--How QE's prop up securities markets

Economics

   This Week’s Data

            Small business sentiment up but still not good:

            http://advisorperspectives.com/dshort/updates/NFIB-Small-Business-Optimism-Index.php

   Other

            Is inflation about to take off (short):

            http://advisorperspectives.com/dshort/guest/Chris-Kimble-130107-Inflation-Update.php

            This article is a bit long but does a great job detailing the how those bank excess reserves are being used to prop up the securities markets (long but today’s must read):

            http://www.zerohedge.com/news/2013-01-07/dear-steve-liesman-here-how-us-financial-system-really-works

Politics

  Domestic

Corporate subsidies in the fiscal cliff bill (medium):

http://www.nakedcapitalism.com/2013/01/why-corporate-subsidies-in-the-fiscal-cliff-bill-matter-we-can-stop-corruption-if-we-understand-it.html

            As impossible as it is, I love this solution to our fiscal problem (short):

            http://www.zerohedge.com/news/2013-01-07/guest-post-fixing-problem-isnt-difficult

            The Fed and big banks screw consumers---again (medium):

            http://www.zerohedge.com/news/2013-01-07/case-there-was-any-confusion-just-who-fed-works

            Meet Geithner’s rumored replacement (medium):

            http://www.zerohedge.com/news/2013-01-07/meet-jack-lew-tim-geithners-replacement