Former treasury official and current ‘scholar’ at Brookings Institute, Aaron Klein, was on CNBC this morning telling America to get ready for rate hikes ‘all year long.’
He likened the Fed’s pace as a race towards 1.5%. This is unacceptable.
“The Fed is racing to get to 1.5 percent for the interest rate so that they can get above the next recession and get out in front,” Klein said Monday on CNBC’s “Squawk Box.”
“There were false starts year after year after year,” said Klein, an economic studies fellow at Brookings and a former deputy assistant secretary for economic policy at Treasury. “I think people are going to start to get used to regular Fed rate hikes all year, starting now.”
Yellen all but guaranteed a hike this March and I’ve read one article after the next about Trump providing the Fed with the cover they needed, via his bold stimulus programs, to hike rates like crazy fucking madmen.
That’s all well and good, if Trump was being supported on the hill and by America’s insurgent media. But the former AG of the United States, Loretta Lynch, just made a God damned video this morning calling for blood in the street to stop Trump.
CNN is openly spying on the President and airing it like it’s acceptable behavior.
Obama has Valerie Jarret living in his DC compound, which is less than 2 miles away from the White House.
Democrats are going after Sessions.
Democrats are going after Reince.
Democrats are going after everyone and are unhinged.
The republican response to all of this tumult is flaccid indifference and milquetoast support.
As such, I’ve sold out of my portfolio today and went to 100% cash. The last two days have hit by bottom line severely, reducing my gains to just +6% for the year. So instead of fiddling my thumbs and sweating over a hot terminal waiting for my luck to get better, I opted to stop the bleeding and take a fresh look at things.
I’m not getting bearish again. I just needed to clear the decks in order to evaluate the market with an objective mind.
Scandal is on the horizon and this political business might be the market’s undoing. Plus, unfettered Fed hikes will not help.
Tell me why I’m wrong.
Pro tip: you can’t.
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