Stocks having been down the past few days on speculation as to what The Dzhanit would say today, and whether improving economic statistics (notably, the lying headline unemployment rate) would "force" a (vastly overdue, and now impossible) increase in interest rates... the words were finally spoken, and this happened:
Headline:
Fed opens door for rate hike even as it downgrades economic outlook
So... admit that the numbers are appalling and the years of stimulus haven't worked, and maybe it's time to think about eventually maybe nudging interest rates a little closer to reality? What a concept!
But I think the real factor here was: no surprises, and the money spigot will remain open for the foreseeable future.
Because, after so many years of insane policies, and the past several years of "We're losing altitude! Pull back on the stick!! Harder!!!", the interconnected financial institutions and governments of the developed world, as well as a great many individuals, have all fallen into the debt trap, and any detectable increase in interest rates at this point would trigger many waves of highly-visible failure. So, count on it: it'll be stimulus all the way down.
In the meantime, so long as the ruling class promises not to rock the boat too much, the run-up in asset prices will continue. Because all the money has to go somewhere, right?
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