yep exactly, Steve has commented a few times on that too, the
market may actually respond favorably to negative news and poorly
to negative needs, it does not want to give up the crack pipe,
hopelessly addicted like a drug addict
The problem right now is that the markets need clearly bad data
so that the 'data dependent' Fed definitively pushes out the dots
to 2016. The risk is that somewhat bad data keeps enough FOMC
voting members thinking "Things aren't so bad and it's just time to
raise rates; let's do it and see what happens." That would likely
be a recessionary trigger and could easily set that 20% correction
that is overdue in motion. And having missed numerous good
opportunities to begin 'normalization', the markets are justified
in being nervous about a badly timed decision in the 2nd half of
this year. SNAFU doesn't even begin to describe our central
planning painted-themselves-into-a-corner Wizards of Oz.
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Futures spike past overnight highs
Posted by windyjazz on 6th of Aug 2015 at 07:42 am
on this news: US layoffs surge to 105,696.
why: further evidence Fed won't hike 25bp in Sept
the market lives in a bad news is good news world
sad state of our economy,
Posted by wowten on 6th of Aug 2015 at 09:30 am
sad state of our economy, that it can't withstand a tiny 25bp rate hike after approx. 7 years! Sheesh.
yep exactly, Steve has commented
Posted by matt on 6th of Aug 2015 at 09:09 am
yep exactly, Steve has commented a few times on that too, the market may actually respond favorably to negative news and poorly to negative needs, it does not want to give up the crack pipe, hopelessly addicted like a drug addict
The problem right now is
Posted by a_l_ on 6th of Aug 2015 at 10:31 am
The problem right now is that the markets need clearly bad data so that the 'data dependent' Fed definitively pushes out the dots to 2016. The risk is that somewhat bad data keeps enough FOMC voting members thinking "Things aren't so bad and it's just time to raise rates; let's do it and see what happens." That would likely be a recessionary trigger and could easily set that 20% correction that is overdue in motion. And having missed numerous good opportunities to begin 'normalization', the markets are justified in being nervous about a badly timed decision in the 2nd half of this year. SNAFU doesn't even begin to describe our central planning painted-themselves-into-a-corner Wizards of Oz.