OT: WSJ "Fed Likely to Remove ‘Patient’ Barrier for Rate Increase as Soon as Jun
OMG! OMG! We could see our first interest rake hike THIS SUMMER! A rise from 0.25% to 0.5% would absolutely kill the recovery and the stock market! Why? Because the Financial Media, RickyBoy, and Josh43 are all in unison on this one. I'm sure stevie-girl would agree too if she was still here. (In fact this one might bring her out of hiding). Also the stock market was down two out of the last three days.
http://www.wsj.com/articles/fed-leans-to…
It's all over! It's all over...
http://www.wsj.com/articles/fed-leans-to…
It's all over! It's all over...
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15 comments
Imagine Dougster leading a session of the Fed Board. You'd have Stan Fischer (advisor of both Bernanke and Draghi) presenting charts and equations relating interest rates to inflation and full employment, with the other governors nodding in agreement. Then Dougster would go apeshit: "You mindless cock-sucking circle-jerk panty waists don't know anything about the economic boom."
From WSJ: "Ms. Yellen has signaled that the inflation backdrop is the key wild card in the months ahead.Though the job market is improving as the Fed hoped, inflation isn’t moving back toward its 2% objective."
I think Yellen will be another great Fed chair.
The Fed has to go to stable policies. Trying to mitigate the last bust was necessary. But going so far as to perpetuate the present bubble in order to help speculators is not good.
SJG
My hope is we get a nice correction so I can find a nice opportunity to put more cash to work, but I'm not waiting for that to happen. I got another 15 years or so before I'm done working. Who cares? It's just noise anyway.
One of the themes behind my stock purchases last year was the inevitable rising interest rate environment. Turns out I had my head up my ass last year and the big investment that I made based on my thesis was not a good performer. I chose an insurance company (MFC on the TSX) and it mostly marked time for the entire year. With the divvy I think that I made about 7%-8% on MFC during 2014. I have not given up on my thesis. I continue to buy more of this stock for the trusts set up for my heirs. When interest rates finally do rise insurance companies, in particular, will make out like bandits in the night.
I am less sure than I was of the timing of the reversal of trends in interest rates. The 30+year bull market in bonds is a very, very tired market. I have been expecting the end of the bond bull market for about 3 years and I have been wrong. I pulled out all the money that I had in bonds when the US Treasury Dept. started shoveling bonds into the Fed's vaults. I missed another 5 years of the bond bull market but I am not complaining.......all that money that I formerly had in bonds went into equity markets in Canada and USA with most satisfactory results.
The whack patrol (Rand Paul, Ron Paul, Ted Cruz) wants to "audit the fed" again. I'm sure Fischer/Yellen needs their help...
Free enterprise is gaining momentum across the globe, and the best way to capitalize on that is with governments who go along with policies advocating capitalism. 10-15 years from now we will see Dow jones likely over 40,000 or maybe 50,000 (time frame leaves a lot of room). The only issue is if you make $100k annually u will need to make $200k in the future due to inflated prices. If you neglect to invest today, you are saying to yourself you would rather find a job paying $200k in 10-15 years to keep up with your $100k lifestyle today. That's just nuts and crazy thinking to me....
hmmm.