Everything Is Now Correlated Exclusively To The Federal Reserve’s Balance Sheet: If The Fed Ends QE2 On June 30, The Market Collapse Will Be Epic

The chart which we presented a few weeks ago courtesy of Sean Corrigan sees a few additional components added to it. Whereas before the chart focused on the Adjusted Austrian money supply and commodity prices, it now sees the addition of the S&P and Junk spreads.

In a word: every single asset class correlates 1:1 with the Fed’s balance sheet.

If the Fed is really planning on ending QE2 on June 30, the market collapse will be epic.

And, yes, this should not come as a surprise to anyone.

Courtesy of Sean Corrigan of Diapason.

Submitted by Tyler Durden on 03/04/2011 14:29 -0500

Source: ZeroHedge

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