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Dear Janet, Explain This!
Having been unable - or unwilling - to answer various reporters' questions with regard the 'odd' timing of The Fed's rate hike yesterday, we thought we would offer just one more chart to question the credibility of the central planners. Plucked from The Fed's own research, last week saw the largest surge in St.Louis Fed's Financial Stress Index (FSI) since August... and as Yellen proclaimed "all clear" the FSI was screaming "Danger" even louder than it did in September - when The Fed folded.
So, Financial Stress was surging and higher than in September when you folded... WTF Janet?
Financial market stress rose sharply in the latest reporting week. For the week ending Dec. 11, the St. Louis Fed Financial Stress Index (STLFSI) measured -0.691, up from the prior week’s revised value of -0.835. Last week’s increase was the fifth in the past six weeks and the largest since the week ending Aug. 28, 2015.
So, Janet, explain that!!
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The Fed is run by it's charter banks JP Morgan, Goldman Sachs, among others. These banks only goal has been to steal wealth from the working classes into their CEO's pockets. The Fed is out of bullets and now the CEO's are going to collapse the economy and watch it burn from their Ivory Towers. Yellen thinks she is is going to have a seat at their table.
The REAL world won't fit nicely into their stupid models
Hurry, someone buy a few hundred dollars worth of UVXY calls!! They won't let the market tank until they expire worthless.
The rate hike may be a head-fake for the real move of paying TBTF banks EVEN MORE to hold excess reserves, in anticipation of the second-leg-down (the big one) of 2008.
Jim WIllie sites Zero Hedge multiple times in this interview:
https://www.youtube.com/watch?v=Yl6oT1eGSEc
Don't worry, be happy:
The Stock Market will Finish Within 1% of Today’s CloseYellen: "I do not have to show you no stink'in charts!"
Cram it Janet
Has a catchy ring to it.
But it is one of those things you would want done without personally witnessing it.
St Louis .... aren't the Rams moving to LA ?????
The Fed is way past making decisions on economic data or even the stock market. They're now constrained by their own previous statements. That's what makes this tightening cycle so dangerous.
When this whole thing starts sliding off the table they won't be able to reverse course. At least not without ousting Janet from the Chairmanship first. (Which may have been the plan all along- who knows?)
if Janet is smart, she should declare "victory" on the rate hike, cite some personal health issues, then exit stage left post-haste and leave the bag to the next guy.
now is her best time to exit.
or maybe not, she did take the job Bernanke didn't want in the first place... maybe she still believes in the mission?
Yeah, but what I want to know is: Is fonz selling?
I'm pretty sure the timing was right on cue!
Don't trouble grandma with difficult questions. :-)
The exigencies of MOPE.
Dry powder
Ready to go
https://www.youtube.com/watch?v=JgffRW1fKDk&index=7&list=RD2eBZqmL8ehg
Ready to go
https://www.youtube.com/watch?v=JgffRW1fKDk&index=7&list=RD2eBZqmL8ehg
Ready to go
https://www.youtube.com/watch?v=JgffRW1fKDk&index=7&list=RD2eBZqmL8ehg
OK, so anyone with any sense knows "it AIN'T the economy, stupid". And the good ole boys (and girls) at the Fed aren't stupid. So they get this country (and many others) over its head in debt, then start raising rates. The Banksters and their media would rather you consider them bumbling "policy error" nitwits, rather than what Banksters really are - preditory lenders.
The Federal Reserve obeys it's master's commands and afterwards constructs a "plausible" narrative to explain its actions.
I have a shitload of questions regarding JP Morgan and several related deals in the energy sector over the last 3 weeks. Especially that IPO that happened today.
This is the same exact play Enron had going a decade ago with former Crooked E executives.
Going for being both Gererating and Transmission and Distribution entities, plus pipeline and water services as well. This is what deregulation in the energy business was designed to avoid. The big push is by JPM and Con Edison. Then you have Spanish based firms. More later.
She is either exactly right or it is an example of major hubris. The next 3 to 6 months should tell the story.
SCREAMING DANGER? Seriously? What is the sign on your axis? Oh right, negative...
"How should the index be interpreted? The average value of the index, which begins in late 1993, is designed to be zero. Thus, zero is viewed as representing normal financial market conditions. Values below zero suggest below-average financial market stress, while values above zero suggest above-average financial market stress."
Not to mention two of their contributing series are high yield, which blew out last week. So yeah...I think you answered your own question. Just here to help, amigo...
At this point the whole economy, the stock market and the fed funds rate is more of a psyops than anything. The investors have been strongly conditioned during the past 7 years - now the fed is exploiting the conditioned reflex they have ingrained. Good news is bad new, bad news is good news, Bernanke put, Dont fight the fed.
The FED doesn't give a shit, and they don't need to explain anything to anybody.
precurser to false flag and subsquent WWIII
The Fed needed to proclaim successs with its easy money policies and take a victory lap by hiking rates on the supposed grounds that the economy is on the mend. What if they HADN'T begun to raise rates and the economy continued to tank nonetheless? Now they can argue the raise(s) was/were mayne in error, but the last frigging 8-9 years of policy were well warranted. CYA rate hike.
Here are some signs of a coming recession.
1. Investors in high-yield bonds are expecting to see their first negative return since the start of the credit crisis in 2008.
http://www.marketwatch.com/story/deteriorating-junk-bonds-flash-warning-signs-for-stocks-2015-12-07?dist=afterbell
2. Factory orders continue to drop
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
3. Default risk spikes
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
4. M&A set record
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
5. Iron ore prices tumble
http://www.marketwatch.com/story/iron-ore-prices-keep-crashing-adding-to-global-growth-fears-2015-11-30
6. Baltic dry shipping index tumbles
http://www.marketwatch.com/story/shipping-index-falls-to-all-time-low-stoking-fears-about-global-growth-2015-11-19
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
It's because the 3month treasury breached the effective funds rate: https://research.stlouisfed.org/fred2/graph/?g=2WFi
Less than zero stress, eh? I guess I'm not familiar with that concept.
Another feminist role model placed into a critical position. Failure ensues. Wait until Cankles tells us about women's equally on tomorrow's DNC snooze fest.
/LOL
Yeah, screw the Fems. cuz' Greenspan and Bernanke did so well...