Saturday, October 8, 2016

Innocence Is No Excuse

If you now have your money wallowing in some active or inactive manged retirement fund, you are an innocent bystander.

Innocence is attractive as far as it goes, but these are anything but innocent times. See current presidential election campaign. With a rare exception still possible, higher interest rates are on the way. What they'll do to the market, if they happen, really nobody knows for sure.

A short-term selloff and then a big celebratory rally or who knows what. What we do know is the debt level continues to spiral upwards with no relief in sight whoever wins this carnival called an election in what is now proving to be anything but a democracy.

It's no longer what the Fed should've done. It's what they will do. And that's continually make mistakes. If the Fed were any more politicized it would be a huge Hillary campaign button. Now having said that, some wag out there will concluded we must be a Trump person. We didn't say that.
But what you want to be is a survivor.

So here an article for you. Read it and decide for yourselves.
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But, but, but… the Fed’s monetary policies for the past eight years have created the biggest credit bubble in US history, including the biggest junk bond bubble ever, a stock market bubble, housing bubbles in numerous cities around the country that exceed by far the peaks of the prior housing bubbles that imploded so spectacularly, the most gigantic commercial real estate bubble, now according to the Green Street Commercial Property Price Index, 26.5% above its totally crazy bubble peak of August 2007….

wolfstreet.com/2016/10/07/fed-fischer-fed-waiting-for-godot-fourth-mandate

Some of Fischer’s own colleagues have been loudly fretting about asset bubbles – including Boston Fed governor Eric Rosengren, a voting dove of the Federal Open Markets Committee, where monetary policy is decided, who’d zeroed in on the commercial real estate price bubble:

us-commercial-property-index-greenstreet-2016-09

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