Once again, the MFM stooges have it wrong or refuse to publish the truth...
What's causing much of the consternation is fear that, like 1937, a desire to avoid bubbles and normalize rates will come too soon and plunge the economy back into a slump. The Fed took its short-term rates target down to zero amid the financial crisis and the Great Recession, and has been there since late 2008.
However, that recession officially ended in 2009, yet the central bank has not moved on policy. In addition to zero rates, it has boosted up its balance sheet to $4.5 trillion in a liquidity program whose effect has been to pump up the stock market by 220 percent.
Arone insists the 1937 versus 2015 comparison is not a valid one: Back then, consumer prices were falling and unemployment was rising, whereas the dynamic is the exact opposite now. The more relevant comparison, he said, would be 1999, where the Fed kept its foot on its pedal during the runaway dot-com bubble.
http://www.cnbc.com/id/102760074What excrement!
First, the recession never ended...ask the millions left unemployed, ask the millions removed from the labor force participation calculations, ask the people who cooked the books to show bogus GDP, unemployment and growth numbers...and some prices have come down (oil, gas, PM's) but others people really need like
beef, hogs and soybeans and ask any shopper if they are getting more of anything for a dollar than they were before Obama ran for office!
And this stratospheric lunacy - "The Fed's exit from zero in 2015 will prove far less dramatic than in 1937: investors today have been raised on a dovish not a hawkish Fed; inflation is perceived to be under control, underscoring Fed credibility; and investor faith in economic recovery is bolstered by a virtuous cycle of rising housing activity, bank lending and small-business activity," Michael Hartnett, chief market strategist at Bank of America Merrill Lynch, said in a note that expresses the most optimistic aspects of Wall Street sentiment.
Fed credibility?!?!?!
Housing still blows and the market values and sales levels are still well below pre-2008 levels, I do not know of any banks lending to people who could really put it to productive use unless they have money to begin with (everybody I know has been weening off of debt)...the rest of the swindle-racket with some low-income folk protected by the proglodyte pols and bureaucrats continues which ensures another wave of toxic waste taxpayers will get saddled with, so when the stock market bubble pops I think it should be worse than 2008.
More on the housing illusion pushed by idiots...
http://www.zerohedge.com/news/2015-06-16/housing-starts-plunge-11-april-bounce-fades-permits-soar-8-year-highFannie - "Raccoon on a aligator"...
http://www.zerohedge.com/news/2015-06-16/fannie-mae-it-again-loan-value-ratio-now-higher-during-housing-bubbleAnd, cracks in the Holy Grail of Fed policy...stawks!
http://www.zerohedge.com/news/2015-06-16/major-equity-index-breaking-downReal unemployment rate?
ME/UE - 25%
http://www.zerohedge.com/news/2015-06-16/whats-real-unemployment-rate-usU6 with fictional denominator is 10.8%
http://portalseven.com/employment/unemployment_rate_u6.jspShadowStats not surprisingly in line with ZH post -
http://www.shadowstats.com/alternate_data/unemployment-chartsYeah, everything is going to be awesome...