Come on kids, let me tell you a story!  

It’s the same story we tell you every time the market goes dark and you are worried about the economic monsters in your closet but it sure works to calm the investors down – EVERY TIME! Yesterday the kids were really scared so they brought out all 4 of the Fed’s master story-tellers to literally speak to kids at the New York Economic Club and boy, did that do the trick!    

NEW YORK—Federal Reserve Chairwoman Janet Yellen and three former Fed leaders sought to dispel worries the U.S. is heading back toward recession despite concerns about slow global growth and the expansion’s advancing age.

Ms. Yellen, joined Thursday in an unusual gathering in New York by former Fed Chairmen Ben Bernanke, Alan Greenspan and Paul Volcker, described an economy that is progressing without breeding obvious new financial bubbles that could derail growth.

“This is an economy on a solid course, not a bubble economy,” Ms. Yellen said. It has made “tremendous progress” from the damage of the 2007-2009 financial crisis.

See, everything is great – no monsters under your bed or in the closet, now go back to the store or the market and BUYBUYBUY! And BUYBUYBUY investors did, reversing half of yesterday’s losses overnight – EXACTLY what we predicted would happen yesterday morning and, how did we know?  Because we’ve heard this story 100 times at this point! As I said to our Members:

I am simply in awe of the effort that is being put in by the G20 to manipulate the markets.  This morning Italy is up 3% on yet another bailout from the EU.  The fact that we need these bailouts (despite all the “oversight” and stress tests) doesn’t bother anyone – as long as the FREE MONEY keeps coming.  

And, of course, our own Fed heads talked up the economy and, more importantly, their ability to wisely steer it, last night.  The main message was well-delivered, using the history of the 4 speakers, they reminded people of how many crises they had steered us through in the past and how worried we all were at the time and how crazy they seemed at the time but how, in the end, they were right and wise and fair and just and it all works out so BUYBUYBUY because all shall be well.