Stocks slumped in Asia, Europe, and the US session Tuesday - then the US magically rallied again, but not into the green. "The first rule of Fed Club is you don't talk about Fed Club"; but did someone forget to sell enough bullish puts? Some may not like the idea that central banks are playing with markets, but as Groucho Marx said, "These are my principles. If you don't like them I have others." For example, IF there is a Fed Club, why can't they raise rates AND pump markets? If secretly selling puts holds up stocks, and you can do that AND raise Fed Funds to pretend you are serious about supply-side inflation you can't control,…then why not?

Similarly, why can't you raise rates AND do QE? Yes, 'they run in opposite directions on yields'. But if you want to finance a huge budget deficit while cooling the heels of the rest of the economy, buy freshly issued government bonds, with higher coupons flowing back to the treasury to boot, and raise rates.