I keep seeing this little fucker on CNBC talking about buying stocks hand over fist, proclaiming this to be a garden varietal correction and then in the next sentence say he’s worried that the Fed isn’t going to RAISE rates and how that would be bad.
Why would it be bad?
Here comes the good part, something shared by fucktards globally.
He said “the Fed needs to normalize rates now so when the next recession hits, they can lower rates.” He furthered by suggesting if we had to do another round of QE, we’d be in big trouble.
Okay, my turn.
What evidence do you have that says QE didn’t work? Last I checked, Dr. Benjamin Bernanke saved the western world from the savage. His investments were brilliant, both in treasuries and the mortgage market. The Fed has massive cap gains on their balance sheet, thanks to QE. Moreover, we have never recovered from the 2008 crisis. We only papered over it. The only way to truly recover is to grow like a motherfucker or reset the national balance sheet, aka go bankrupt. We both know that isn’t going to happen, voluntarily.
So, the only option we have available to us is to extend the death sentence. Global growth is slowing in a big way and the Fed cannot be seen to be ridiculous, by raising rates in an environment like this.
Like it or not, this is the new normal. The old rules and tools do not apply. Raising rates for the sake of being able to cut them later is a ridiculously laughable proposition. We have 19 trillion in debt, son. There isn’t an advantage to be had by raising rates with that sort of fuckery.
The best thing the Fed can do now is remove the option of raising rates in 2015. That would stoke the flames of speculation and lend confidence to the canaille day trader, who is now in his natural peasant form, without the accouterments of faux wealth to make him/her feel better about themselves.