Is This Where ‘The Rubber Hits The Road’ Becomes ‘When It All Came Off The Rails?’
Is This Where ‘The Rubber Hits The Road’ Becomes ‘When It All Came Off The Rails?’ by Mark St. Cyr
As we sit here awaiting to see whether or not the Federal Reserve does, or does not, raise interest rates one thing is becoming clearer: This time – it’s different.
Say what you will for all the prior calm that the “markets” seem to be expressing, or argue as so many next-in-rotation fund managers scrambling to any open microphone or camera to explain their reasoning that the “markets” have “priced in” any such policy changes.
Or, maybe you are taking solace in the arguments now being professed by the merry band of Ph.D economists, “think-tank” aficionados, or Ivory Towered academics as they explain why “The numbers show the Fed. is on the right track and pace.” Even though just a few months prior (October to be exact) this same cohort argued and backed Ms. Yellen’s own assessment and proclamations. To wit:
The Federal Reserve may need to run a “high-pressure economy” to reverse damage from the 2008-2009 crisis that depressed output, sidelined workers, and risks becoming a permanent scar, Fed Chair Janet Yellen said on Friday in a broad review of where the recovery may still fall short.
Yet, that was then, and this is now. Or said differently – that was right before the election when the results were all but a lock, and this is after, when all those “locks” were smashed into oblivion.
It was also when the “markets” were (here’s that term everyone seems to have forgotten) – once again – rolling over and feeling a lot like all those times previous where the next stop “Bullard Bottom” – once again – seemed inevitable.
Below is a “picture” as “The Valley” likes to call it to bring back a few memories. To wit:
Just to refresh those memories a bit more: those saves and bounces off that “Bullard Bottom” over the past 24 months or so has not been the result of some sudden “great economic numbers!”, or “improving data!” No, those are all the result of one Fed. official after another rushing to any open microphone, camera, or publication as the “markets” were – once again – rolling over to make the “markets” explicitly aware, “They were at the ready, and would consider even more QE or other measures if needed.”