Friday, November 11, 2016

The Market is in Shambles,
What's Next Could be Worse
The Daily Reckoning essay highlights how when the Federal Reserve begins to raise interest rates in December, the stock market may take a hit .. "The market continues to have a persistent fear of interest rate hikes. The real issue that markets should be focusing on appears to be lost in the noise. What happens when the next crisis hits and a real recession recession is triggered in which global markets begin to crack again? Under such circumstances how far can the Fed actually cut rates if they are only at a laughable one or two percent? The U.S central bank has positioned itself into a very narrow corner. This could mean detrimental impacts on the longevity of cheap money afforded by the U.S. central bank. It could impact the global fiat money culture that has permeated just under the surface in order for investors to have enough confidence to carry on. It could show that the house of cards of the economy is taking on water .. The Fed’s strategy during the financial crisis was to lower interest rates and to pump money back into the private banking system. This time around, it has left a massive vulnerability gap in its toolkit to react and triage an economic spiral."
LINK HERE to the essay

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