Jeez, it’s already sky high.
Wouldn’t the best sign that the economy was firing on all cylinders be that the number of makers was increasing while the number of takers rapidly declining?
This guy apparently thinks his clients are simpletons.
This is good news. Some on Wall Street are waking up to the simmering pot that’s about to boil over and want to be on the right side when it does.
We have been sitting under the rate hike threat for so long it is getting weary. You can only cry wolf for so long.
The radio spots about “you know the market went down in 2008. You know it will go down again soon. Call us and we’ll sell you...what?”
I think it would be best to have the rates go up a bit but they can’t... the interest on the debt would send us over the edge into the abyss just that much faster.
Wall Street makes money from investor fear because it makes people sell stuff that they will just have to buy back later.
Meanwhile, the rise of the machines just keeps on trading in little bits back and forth. I wonder when they will eventually quiver the market to bits locked in a hopeless fit of indecision trading algorithm an endless do loop of high frequency low amplitude trades.
Historically, the Fed has been caught flat-footed by economic turns. That means that surprising strength generated immediate rate increase, and surprising weakness generated immediate rate decreases. There was very little forecast value to the Fed’s move, since it was surprised by the strength or weakness and just reversed policy accordingly.
Today, the only, and I mean only, reason the Fed says it wants to raise rates is because rates have been so low for so long. The evidence for the economy speeding up is so weak that the Fed is starting to worry that the next recession might be upon us soon. In fact, that fear is one justification people are using for the Fed raising rates now, i.e., so that they’ll have some room to cut rates again when the inevitable recession comes.
It’s even possible that the Fed might end up finally raising rates just as we enter a recession, instead of doing so after having been surprised by economic strength. This is not at all the same environment that prevailed historically around Fed rate increases.