"...Hide your kids, hide your wife, and hide your husbands 'cause they're raping everyone out there..."
Stockman has claimed the sky is falling for five years.
Almost sounds like that’s the Fed wants - have investors sell off investments without reason in order to generate more taxable income now.
Stockman is a hand wringer.
I get David Stockman’s almost daily email newsletters. His information and knowledge are valuable. But, mygosh, every day he’s saying the end is tomorrow.
Raise rates, continue QE and the central banksters and governments can buy up the markets and dial in the prices.
Has this guy done anything except repeat himself for the last ten years?
So what does the prudent citizen do?
Unfortunately, Stockman left it at the academic level.
What he needs to do is a “meat and potatoes” analysis of when a crash happens, what *exactly* will happen.
Will the stock market crash? Not likely, at least under the current administration. This is because the market indices are now entirely manipulated - governed - in the real sense of preventing the market from correcting itself.
Say you had 20 billion dollars, that you could insert or remove from the stock market, *invisibly*. You are not trying to earn more money or lose money, just to prevent the market from appearing to crash, by supporting the stock of a limited number of companies.
So how can you have a stock market crash if the indices don’t move lower?
Granted, if Cruz or Trump are elected, the FED might decide to simply *stop* manipulating the market, that would almost certainly cause a market crash.
Okay, so what about Great Depression level unemployment?
We currently are approaching that *right now*. And yet, there are not huge lines leading to soup kitchens. Yes, there are a lot more homeless and poor people now.
What about oil and gas prices? Nothing really special, there. Just getting over a period when gas was overpriced.
http://www.macrotrends.net/1369/crude-oil-price-history-chart
So what is going to happen?
Seeing clouds on the horizon and predicting the exact time it will rain is difficult, however we still know rain is coming.
I will go out on a limb and predict SHTF the day after a Republican is elected President. Soros and others will pull the trigger.
Wait. Isn’t he one of these guys who claimed that the dollar would crash as soon as the Yuan was listed as a world reserve currency?
That’s not a good description of Yellen & her FED.
While she’s Keynsian & an Obama supporter she’s
still an economist.
She watches the statistics as they come from the
govt.
So long as the #’s are fairly accurate she’ll
eventually do the right thing.
Whatever problems we have, will not come from her
decisions.
If she errors, we will have INFLATION!!
” Sell The Bonds, Sell The Stocks, Sell The House”
If bonds, stocks and real estate values crash, everyone is poor. The RAT dream of equality becomes a reality.
The Fed doesn’t determine interest rates, the global bond market does.
One of today’s Wall Street Journal headlines makes this clear: ‘’Fed Hikes But Some Rates Veer Lower.’’
Janet Yellen wants U.S. interest rates to rise, yet the yield on the 10-year bond has FALLEN ever since she ‘’raised’’ rates two days ago.
That’s because, as the WSJ states, ‘’Strong global demand for U.S. Treasurys, which tends to push down yields, is potentially creating a conflict with the central bank’s plans...’’
In other words, unlike good chess players, the Fed can’t see two moves ahead, and so its best laid plans are going awry.
And, therefore, whatever economic benefits the Fed thought it would achieve by ‘’raising’’ rates will actually hurt the economy by causing rates in the real world to fall.
Thank you, Janet and your fellow learned but foolish Keynesian economists, who have no ability to foresee the implications of your actions.
All this over a quarter-point rate hike?
All of comrade obama’s so-called accomplishments are biodegradable. Exposed to enough light they’ll inevitably crumble to dust.