The Fed argues that low rates have worked. The economy emerged from recession. Unemployment drifted back down. “Yay for us,” said the Fed. Don't buy that statistical economic garbage.The economy recovered in spite of Fed policy, not because of it.
"In a looping debate rant, Mr. Trump argued that an increasingly “political” Fed is holding interest rates low to help Democrats in November, driving up a “big, fat, ugly bubble” that will pop when the central bank raises rates. This riff has some truth to it... The stock market should be a barometer of the economy, but in practice it has become a barometer of Fed policy."
The Fed has created a situation where the housing industry is so dependant on the massive interest rate subsidy that any uptick in rates is likely to cause a cataclysm. The Fed and its cohorts are responsible for this mess. They have left themselves, and us, with no way out.
Most of the 90 minutes last night was a waste - with both candidates lobbing well-worn clichés, slogans and sound bites at the audience and each other.But there was one brief moment that made it all worthwhile.
The Wells Fargo bank account scandal took center stage in the news last week and in all likelihood will continue to make headlines for many weeks to come. What Wells Fargo employees did in opening bank accounts without customers' authorization was obviously wrong, but in true Washington fashion the scandal is being used to deflect attention away from larger, more enduring, and more important scandals.
"These linear thinkers can’t understand why their playbook of lies, misinformation, pointless social justice issues and a myriad of other inane distractions aren’t working this time. They fail to acknowledge that history is cyclical and we’ve entered the phase when generational cohorts are aligned for dramatic sweeping change. The data is there for all to see, but those benefiting from the current perverted paradigm will not be swept aside without a bloody fight."
On November 8th, the US Presidential election will take place. Below Bank of America lists eight trades, all specific to the election, some applicable to whoever wins, some dependent on the election result:
It turns out that 52% of all the new jobs - 5.25 million - reported by the BLS since the end of the recession were imagined, not counted. This amounts to still another whopper from the government statistical mills, and more evidence that the so-called recovery is based on a tissue of lies.
The nation’s rogue central bank is essentially a reverse Robin Hood on steroids. If Donald Trump wants to hit the ball out of the park next Monday evening, therefore, he needs to quickly skip over his dog-eared income tax cut plan and put the wood good and hard to the Fed, Janet Yellen, and our unelected financial rulers.
The problem for the Fed is that once again the window for a “rate hike” has likely closed. Economic uncertainty, deflationary threats, and market volatility will keep them boxed in for now. Unfortunately, the recent spike in LIBOR has likely already done a bigger job of tightening monetary policy than the Fed actually intended to do. This could cause problems in the not too distant future.
Goldman has been using the proceeds from the new deposits to directly fund speculative activity such as trading and investments, as well as more conventional activity such as creating looans. Goldman Sachs built up its consumer bank, led by 40-year-old Goldman partner and credit trading veteran Gerald Ouderkirk, whose job is to use consumer deposits and other types of funding for trades, investments and loans.