We take a look at quantitative easing and its effects on the stock market. Well no surprise to us, this entire 10 year bull market has been bought by the Federal Reserve and is paid for by the Middle class of this country. When this bubble bursts, don’t be surprised if we go back to 2009 levels when QE started – that’s a 75% decline by the way. Are you ready?
We review some data regarding tax receipts and discuss whether this is a good gauge for predicting recessions. Remember, the economic puzzle has many pieces and one piece does not make the puzzle. However, looking at this metric in conjunction with many others paints a vivid picture.
It doesn’t matter the news, these markets just want to have fun and continue their ascent. We’re only a few percentage points from all-time highs. Will it happen? And if so, when? Is this a setup for something big on the other side? Remember we have The White House already starting the blame game with the Fed.
Get ready for The White House and the Pres to start playing the blame game for the economy and the stock market. In recent days, we have seen and heard from a couple of White House econ advisers giving their advice to the Fed. Read between the lines and understand that we are NOT witnessing an economic miracle, but rather a bubble, and it’s nearing its end.
The USA is the biggest debtor nation in the history of the world. This is NOT a good thing and it’s only getting worse. Where is the leadership? Where are the calls for a true national discussion to remedy these issues? If we don’t tackle these issues, the markets will, and it ain’t gonna be pretty.
With central banks the world over shifting their tones and policies to the dovish side of the spectrum – does this mean we are in the midst of another race to the bottom? It appears so, as the reality begins to set in that we are in a global slowdown, the policymakers are ready to print more and more funny-money!
Well it appears that we have additional central banks expecting their next move to be to the downside regarding interest rates. We also have Stephen Moore, an appointee of President Trump’s to the Fed, who wants the Fed to cut rates 50bps immediately! I can’t make this stuff up!
Following last week’s market sell-off and talks about the inversion of the yield curve – what does it all mean? This is another piece in the economic puzzle that tells us that the US and global economy is slowing. No surprise to us here, but how the markets react is what we have to focus on going further.
No surprise to the followers of The Kapital News, but the markets took a whooping today. Does this mean the markets are finally catching up to reality and will be returning to fair value? These bubbles need to end and we need a correction no matter how painful it will be. We simply cannot continue to behave in this manner with more and more debt in all sectors and facets of our economy.
So the Fed gave the cry-babies on Wall Street what they wanted – a dovish tone and no more rate hikes until 2020. At least that’s what they say – can they be trusted? Nonetheless, the markets were up today. The question remains, is this a short-term high or will it last?
