Loading ...Richey re 6:15 highly speculative markets dictate FOMC monetary policy
re part: “to avoid at all cost the Scourge of Disappointing Markets. At the minimum, the Fed should signal it will now pause. Most view this as unlikely, as such a bold maneuver risks upsetting fragile markets (trading at record highs). ”
Comment:
My view??? They are not markets, they are everybody’s bank account. Stocks Bonds and Real Estate are like bank accounts now, and they are NOT, FDIC insured. So it would make sense for the Gov’t and Fed etc to try to avoid people losing uninsured money again like 1929. Its not just fake news. The whole economy is fake, and LOADED with fake jobs.
R6 re: Credit Bubble Bulletin
Noland is a smart dude, no question about it.
The Fed has to cut for two simple reasons, the interest on the debt is unmanageable and the USD is too strong.
Not sure what’s going on with the Repo’s and the liquidity crunch and POMO er…QE
Got gold?
Even with the S&P at highs, unemployment at lows, financial conditions loose, and “money” growing crazily, the Fed apparently has no alternative but to cut rates for a third time in three months – to avoid at all cost the Scourge of Disappointing Markets. At the minimum, the Fed should signal it will now pause. Most view this as unlikely, as such a bold maneuver risks upsetting fragile markets (trading at record highs). It’s hard to believe the FOMC is comfortable having highly speculative markets dictate monetary policy, but it’s similarly difficult to see them willing to break this dynamic. Right, no appetite for rattling markets.
I’ll be really curious to see how history views this cast of characters. When asked about his future, Draghi said “ask my wife.” I’ll assume he’ll follow in Dr. Bernanke’s footsteps – rake in millions. It’s an absolutely wonderful time to be an ex head of one of the world’s major experimental central banks. Such powerful incentives to keep the game going – the Bubble inflating. “‘Never Give Up!’ Draghi Tells Lagarde as He Leaves ECB,” read a Reuters headline.
