This Wasn't Supposed To Happen
Two words - "policy" and "error"
Gold up 3%, Long bonds up 2%, Stocks down 5% since the Fed hiked rates: This was not supposed to happen!
And money markets are not buying what The Fed is selling.
What rate hike? The market is starting to whisper about an imminent rate cut.
What does it say about The Fed when one month after they confidently hike rates (for whatever reason they concocted), the market implies a rate cut is more likely to come next.
And this is what The Fed offers:
- FED'S LACKER: CASE FOR HIGHER INTEREST RATES OUGHT TO BE CLEAR
Actually, not so clear at all, considering the US is now in an industrial recession, although as we joked last night:
What the market needs is an emergency rate hike to boost some more confidence
— zerohedge (@zerohedge) January 7, 2016
And then there was this:
- FED'S LACKER: DON'T ANTICIPATE NEGATIVE INTEREST RATES IN U.S. IN '16
At this point we would show a chart demonstrating the "accuracy" of Fed predictions but by now that would be redundant.
- Login or register to post comments
- Printer-friendly version
- Send to friend
- advertisements -





Your analogy makes it seem like you think the Fed made a valid choice "it's still running, they have it under control. I'm sure they saved a very valuable boat."
That you Janet?
Pop Corn for Breakfast YEAH....
The best way to destroy the capitalist system is to debauch the currency.
-Vladimir Lenin
We be there.
Over and over again.
By saying "don't expect negative interest rates in 2016," Lacker just put the entire world on notice: Negative rates are lurking in the wings, waiting on a curtain call. We are ALL so screwed. There is no way out; the Fed will not admit that they are fucking EVERYTHING up, and central banks around the globe have no incentive to stop the madness.
Yep. Its as good as gone. Whenever these talking heads say something, the opposite will happen. Buy another shoebox for hard currency storage.
Perhaps the Fed's wanted to created a selling/buying opportunity. For themselves.
This is what happens when you paint yourself into a corner. At some point, any decision you make is going to be a policy error. Couldn't have happened to a nicer bunch of people.
...but we all pay, and dearly.
Whenezuela!
Accompanied by a "vuvuzela"
Martha and the Vandellas: No where to run to, baby, nowhere to hide...
The Fed and all Central Banks around the globe have NO INCENTIVE to do what is right...so they will keep doing what is wrong. We are all so screwed.
USDCAD top <:-)
easier said than done
Mr. Obvious said back in 2010... "The Fed' has painted itself into a corner"
The paint is still wet, the Fed is still trapped.
It says buy gold. The real bits of metal stuff.
Why buy gold when you can just sift it out of the river?
I tried that once.
Sift away.
You might get an ounce in 1000 years.
Then you're paying for your gold with energy instead of directly with money. Same difference.
Waaaay off the lows. WTF?
QE-1001 for MOARRR Fairy Tale funny money so we all jump into Hell with the FEDs....
This morning, Yahoo Finance quotes George Soros,
"It should be noted that the current turmoil distinguishes itself from 2008, when reckless lending, willful blindness to a mountain of credit sector risks and feckless and irresponsible regulation and supervision of markets were the causes of the crash, given that central bank policies have been encouraged and been wholly responsible for the current protracted bout of gross capital misallocation."
The flicker rate makes whatever real enough for most.
Word for today, kiddies..."Emergence"
https://en.wikipedia.org/wiki/Emergence
Will they get it green by noon?
Time to convert some digital digits to hard to get and hard to find and process and costly to manufacture valuable assets
New normal (again)
Same as the old new normal.
Here, wear a pair of these, it will make it all better:
http://lairigmarketing.typepad.com/.a/6a00e5500aa5b98833015434c15b2d970c-pi
If you don’t know the game – you don’t know the rules.
If you don’t know the rules – you don’t know the score.
If you don’t know the score – you don’t know whose winning.
If you don’t know whose winning – you don’t know how you’re losing.
Questions.
What’s the end game?
Who wins what?
Observation.
Probably not about money at all.
Of course not. For the other side, it's about finally gaining the omnipotence they crave.
For us, it's about survival as a species.
The ultimate goal of our elites is transhuman immortality for themselves, and the replacement of the rest of the human race by robotic slaves able to do any useful task as well or better than humans, and far better equipped to conquer the galaxy than we are---and certainly far better suited for a socialist mode of production. Robots unfailingly produce according to their ability, and consume only in line with fuel and maintenance needs.
Basically, it's a twisted version of the Revelation with all pretense of Christianity or a loving God removed. The elites joyfully await the happy day when those they consider unworthy are cast into the pool of fire and sulphur, and they, the elect, will get to live happily forever in a cyber-Jerusalem and on a planet cleansed of the stink of the lower orders of humanity.
Who knows? Once they no longer have to worry about earth being habitable by mere humans, they might even try making the sea as dry land, the better to get at the resources on the sea bed. Terraforming has endless possibilities!
If you like your rate hike, you can keep your rate hike.
Rates need to rise despite being in an industrial depression. The causes of the depression are already baked in, those decisions were made a long time ago. We need now to have decisions made that will produce a better future, and that requires rebuilding the savings -> capital accumulation -> investment pipeline, which in turn requires interest rates high enough to make savings a reasonable option.
With real negative interest rates, why save when your savings will buy less tomorrow than they will today?