Posted on 12/14/2016 11:32:55 AM PST by RummyChick
Federal Reserve officials, amid signs that the U.S. economy soon could shed its long period of stagnation, approved the first interest rate hike in a year Wednesday and said it foresees three more increases next year.
The stock market reacted calmly, while the dollar and bond yields rose.
(Excerpt) Read more at cnbc.com ...
They are playing a game of pure bullshit here. Even though the economy absolutely sucks, they are trying to paint some make up on that pig by raising rates because they say the economy is getting hot.
BTW, I’ve been around or in the energy biz for almost 50 years. I also hold gas mineral rights that are paying.
Oil’s outlook is NOT changed by this tiny event. The big thing already happened for now.
I disagree with that assessment. There may have been a couple bad quarters but Canadians were still buying the BS that things were better in Canada than the US. The perception at the time was still quite bullish.
I wish there was an easy explanation for a part time drama teacher beating a moderate with a great track record.
I don’t agree. The FED tries to forecast, it’s not always right of course, no forecaster is.
The FED could be right to expect slighter better economic activity going forward. I expect better growth.
A .25% raise is virtually a no effect event. It what they do down the line that will matter.
I’ve only been at this about 50 years and of course I can be wrong too. However, I pretty much goofed off until I was 35 and retired at 60, so I’ve been right more than wrong.
Well I hope we have an “honest money” guy in the office. Time to let rates take the course the markets direct them. Other words, eliminate the Fed Reserve.
GREAT idea.
Not going to happen.
Artificial sugar high of funny money no longer needed. We will be manufacturing real products again.
I would like a gauge of the REAL economy. How are PRIVATE (not public) companies doing? How is small business? How are the self employed doing?
I see $70 as a fair price for a growing economy. Most of the world is not growing (China’s numbers are always BS). But perhaps the US will start growing, I don’t know.
I am no oil man, but I would be hesitant to grow operations in marginal oil producers. Once bitten twice shy. Why invest if oil might tank sub $30? Why bother even restarting rigs?
Exactly.
This of course may be completely anecdotal, but when I buy toys for my kids, I can’t believe how much they are now charging for these pieces of crap plastic molded by some Chinese fingers somewhere. Is stuff from China starting to inflate in price?
What is your outlook?
Yeah, what you say makes sense. I just can’t help but not trusting the Federal Reserve. It would be nice if that was the simple truth, but I think they play games with the reserve rates. (Like trying to get away with an economic bump by just “teasing” the country for months about a rate cut, but never actually following through)
Yup. At minimum, it is odd that it happened now. A coincidence?
“The stock market just moves around paper and more or less is a casino of sorts.”
A literal casino. Prices are not born of profits.
Might as well gauge the economy by how Vegas is doing. “The economy is doing poorly as revenues in Vegas were down this month.”
Slightly higher prices going forward is most likely scenario.
The wild card is how much cheating by OPEC.
I’m sitting on some high dividend energy companies. I don’t care much about what their price does as long as the dividends hold up. If they drop too much they can become buyout targets, which would be a win-win.
Oil and gas are going to be around for a long time, no matter the watermelons want or say.
Figured whomever won the election would be the “loser” in the end because they'd have to deal with the mess of the past 10 years or so — the economy, the Obama debt, the Middle East, ISIS, Obamacare, etc. etc.
The good news is that we need a really good manager and not a politician — to clean up the mess — instead of make us more promises and Trump might be that man. Crossing my fingers.
Isn’t it a ten year term
Wow. Clearly, then, the Fed is political and playing politics with our futures.
The engine if fouled and needs a good cleaning. Maybe a rebuild. :)
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