Well, the Fed has goosed the market again, by cutting interest rate by a half percentage point; no one is saying what is OBVIOUS: they are only UNDOING (trying to undo) the damage they did in RAISING rates in 2006!
Well Defourjay, not only that. In fact they help the rich not losing money. Inflation wise they can't lower interest rates at all with the Fed printing bank notes with an annual 12% (!!) So consider this money supply (=inflation) at 12%. With rate hikes this inflation was being fought. Now by lowering rates the liquidity bubble which suffers the whole world of only gets encouraged. Thats why the Dow moved up straight away with a point or 300. At the same times oil and gold prices went thru the roof too. If record oil prices arent inflationary, than what is? The eufory wont last long. Next month its exactly 20 years ago since the markets collapsed: expect some fireworks there. BTW you might like to read "The International Forecaster" on my blog too.
2 comments:
Well Defourjay, not only that. In fact they help the rich not losing money. Inflation wise they can't lower interest rates at all with the Fed printing bank notes with an annual 12% (!!) So consider this money supply (=inflation) at 12%.
With rate hikes this inflation was being fought. Now by lowering rates the liquidity bubble which suffers the whole world of only gets encouraged. Thats why the Dow moved up straight away with a point or 300. At the same times oil and gold prices went thru the roof too. If record oil prices arent inflationary, than what is? The eufory wont last long. Next month its exactly 20 years ago since the markets collapsed: expect some fireworks there.
BTW you might like to read "The International Forecaster" on my blog too.
Fascinating how prescient I was.
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