Sufficiently Philanga....thropic wrote:lochaz-index wrote:Sufficiently Philanga....thropic wrote: These fed mandarins just can't get the hang of it,can they? From extremely hawkish to dovish in a record three months! What changed to necessitate a policy shift? Clearly they are out of their depth here.
Apparently soaring debt/ebitda was one of the basis for hiking rates. Which begs the question, why create a problem and then act as a catalyst to exacerbate the consequences?
Policy errors will not be kind to the already wobbling global economy.
I am looking forward to the dollar decoupling from the fed chosen course of action in the medium term.
NIRP is beckoning.
That's the whole idea. Make the USD weaker to force inflation to the 2% target. The dollar will sell until the surprise rate hikes show up maybe in Dec after the US elections.Obama has to leave office with the Dow at
18k plus....you know.... Cheap money will be here for a while.
@Mnadii's 105 call on the USDJPY will surely print......poor Kuroda
To rephrase the highlighted words in the caption above, I meant that the market is soon going to start calling the Fed's bluff or better yet, start shorting the Fed's decisions aka act in reverse. This should not take long given the current state of affairs.
Dow @18,000 by November...that will be quite the feat if they manage it. They can manipulate the short-term gyrations all they want but once the bear comes to play they will be helpless just like the rest of us.
The main purpose of the stock market is to make fools of as many people as possible.