The Fed is not behind the curve on raising rates its behind the curve on easing. They have lowered their growth projections fairly dramatically. The venerated dots just moved quite a bit. After this sugar rush in equities today and perhaps some nominal new highs reality will set in. There is currently a dollar shortage. The only way to curb that is to start printing. QE4 IS COMING! The Fed now has ZERO credibility. Lower equity prices will force the printing.
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Joined May 7, 2014
165 Blog Posts
lol
Thanks BlueStar.
Are you concerned about a panic at banks or brokerages?
I hope to pull a little of my high lev trade off the table tomorrow.
http://usawatchdog.com/financial-system-will-collapse-just-a-matter-of-when-laurence-kotlikoff/
Forgetalpha,
do you find QE4 funny? you do realize the game is about where the puck is going not where it has been? right?
Marc Faber also believes the fed won’t raise interest rates this year because ….. the economic data wasn’t great
http://www.cnbc.com/id/102514623
Bluestar, why do you say the Fed has ZERO credibility? Also, if you believe QE4 is coming, will it be due to dollar strength (which we obviously have been experiencing for a while), or will it come because equity prices drop?
Not trying to question or debate; looking to learn and gain insight from all camps. Thanks.
boyaj,
When I say the Fed has zero credibility I mean that they painted a picture of economic health a mere few months ago. Asset prices except for equities have been signalling a slowing global economy as well as the strong dollar. Their forecasts are garbage. The continued deterioration of the global economy and eventual decline in equity prices will prompt them to consider or implement QE4. The rising dollar is but a symptom of deflation sweeping the world.
Bluestar, thanks for the response. As someone who is more of a value investor and likes to keep a certain amount of cash to take advantage of situations as they come, I’m always looking for a good opportunity.