Hello there fine gents,
Early this morning, Lord Norman Lamont had a word, or two, regarding the obliqueness of the Janet Yellen Federal Reserve. Our good Sir offered his two cents, as well as the final say, on the eventual outcome of the ridiculous Yellen ‘dot plot.’
There is nothing else to be discussed on this matter. It is now closed. EXCHEQUER NORMAN LAMONT has said what needed to be said on the matter, so consider it a moot topic henceforth.
Good day.
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It’s weird — everyone knows that dot plot is bullshit, just like their prior predictions have been regarding, e.g., the employment rate or inflation. Yet they soldier on proclaiming we’re getting 4 hikes this year pretty much no matter what.
They are scared of becoming Japan. However, we are not like Japan in any sense and we will prevail.
Santelli Rages, They “Will Certainly Turn Us Into Japan”
The dot plot is bs of course. But the Fed has to make up some reason why the bankers are right to want higher rates. Approximately 38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System.
What do you expect the Fed to say? That the banks want the Fed to hike rates so that the banks can justify hiking rates on your credit card and mortgage? That would not fly well in Peoria.
The “official” reasons for doing things are often bs that is used to obscure the real reasons that would incur justified wrath.
Here, Here.
(Stomps socked foot in red Crocs and Easy Walker Glider Cane on laminate floor.)
Was that ex ante or ex post his earled grey tea?
Let’s hope the Fed can connect the dots and come to the proper decision.
Never tell people how to do things. Tell them what to do, and they will surprise you with their ingenuity. – Patton
Why the banks pressured the Fed to hike rates:
“banks make their profits by taking in deposits and lending the funds out at a higher rate of interest. And this business gets squeezed in a low-interest environment: the rates banks can charge on loans are pushed down, but rates on deposits can only go so low. The net-interest margin — the difference between the interest rate banks receive on loans and the rate they pay on deposits — has fallen sharply over the past five years.
“The appropriate response of policy makers to this observation should be, “So?” There’s no reason to believe that what’s good for bankers is good for America. But bankers are different from you and me: they have a lot more influence. Monetary officials meet with them all the time, and in many cases expect to join their ranks when they come out on the other side of the revolving door. Also, it’s widely assumed that bankers have special expertise on economic policy, although nothing in the record supports this belief. (The bankers do, however, have excellent tailors.)”
from The Rage of the Bankers
http://www.nytimes.com/2015/09/21/opinion/paul-krugman-the-rage-of-the-bankers.html
That being said, even bankers might start to agree right about now that it is better if the stock market does not go to zero. So perhaps bankers’ expectations of the Fed will be changing now.
This is the second video in as many days featuring Ms. Francine Lacqua. Frankly, I approve of its content.
So the game is always the same, but one day the math will be different, no? Many have believed for a long while now, if even if ‘bullish’ with their money, that eventually the feds’ easing/rate experiment will end in disaster, but maybe also we’re bound for blow-off top via more easing (or goodness forbid negative rates).
But now that the fed has actually hiked once, things have gotten more complicated in terms of calculating long, medium, or even short term risks/direction. (I’m flat after being shaken around considerably the last several days)
If we ever do end in disaster, it won’t necessarily be because of anything the Fed does. The last crash in 2008 was caused primarily by housing and by mortgage securities related issues. There are a lot of strange derivative financial products that could blow up the same way the mortgage securities did in 2008. Many people expect for that to happen and for it to cause the next crash. Only time will tell if they are right. Lots of people act like they have a crystal ball on the financial markets, but that’s just marketing. No one really does.
You are tough to figure out. But then you are a frog.
The world is also tougher to figure out that permabears think it is, or than permaRepublicans think it is, or than permanDemocrats think it is.
This could get colorful tonight.
Let the games begin!!
Something seems off with American Companies.
If you can’t make good profit wit 2. 3 or even 5%
money , quit and give the job to someone you
Didn.t go to school or grow up with.Fuck me.
Trump is clearly winning and he hasn’t said anything yet.