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Business/Finance See other Business/Finance Articles Title: Last Night at Janet Yellen's... “Oh, no, what have I done?!” At around 3 this morning, Janet Yellen was jolted out of a terrible nightmare. Her heart was ‘thump-thumping’ away like boots in a dryer. Her breath was a mile a minute, and as shallow as her mind. Icy sweat poured off her in streams... “I’m just a nice Jewish girl from Brooklyn. How’d I get myself into this mess?” We’ve often wondered the same. And boy, Janet’s December rate hike has really flustered the fish! This week was the Dow’s worst to open a new year… ever. The thing puked up about 900 points on the week. No wonder she can’t sleep. Did her rate hike trigger the demise of “the era of bubble finance,” as David Stockman has been reckoning in these pages? We don’t know. But maybe a crash, correction, reset — whichever you choose — would be just what the doctor ordered to bring Wall Street more in line with Main Street. By our lights, that’s the way it’s supposed to be. The Fed’s sojourns into the monetary outer limits have driven them apart for years, and by a good stretch. A Thursday article on Yahoo Finance unwittingly struck at the issue. More specifically, of Wall Street’s expectations for permanent summer, no matter the real economy... “Overblown News: China Wrecking the U.S. Economy” was the headline. The Chinese economy is having a devil of a time. Exports are down. Chinese stocks gave up something like 10% this week. Panicked capital is taking wing. And commodity prices the world over have gotten thwacked by plunging Chinese demand. It seems natural enough that all this thunder and lightning in the world’s second-largest economy should give U.S. investors a fright. But not to the author of this article. He says it’s all “overblown”: “The U.S. economy is looking pretty good, with strong job growth, decent spending, and finally, a little bit of wage growth. Sooner or later, the U.S. stock market has to reflect that… The U.S. economy will sustain itself for the foreseeable future. That’s the real story.” The economy’s looking pretty good? Not according to Jim Rickards. Here’s what he said here yesterday: “The U.S. economy is heading for a recession.” Jim’s not the only Cassandra out there. Reuters threw more cold water yesterday: “Weak reports on U.S. manufacturing, construction spending, auto sales and export growth prompted economists this week to slash their fourth-quarter GDP growth estimates by as much as one percentage point to as low as a 0.5% annual pace.” And the bit about strong job growth? Despite the Soviet-style manipulation of unemployment rates by the government, The Atlantic reminded us yesterday that U.S. labor force participation is at its lowest level since 1977. If anything, investors seem to be acting rationally in the face of poor economic news. But the Yahoo Finance writer sees it differently. And why shouldn’t he? Everything’s been ass-over-teakettle for years now... The real economy has seen little to no growth since the Great Recession. But that didn’t bother Wall Street in the least. Stocks went bananas for seven years despite it all — the third-longest rally in history. Does that make sense? Common sense says no. So does economic logic. That is, assuming Wall Street is supposed to be a more or less accurate thermometer of the Main Street economy. It no longer is. The thermometer’s busted. And the Fed broke it. We have no idea where the stock market would be if it was tethered to reality. That is, if it didn’t get trillions in welfare payments from the Fed. Dow 10,000… 5,000… 100? We’re sure of very little in this world. But we’re fairly sure of this: It wouldn’t have gone on a seven-year bull run that flirted with Dow 19,000. Here’s a wild thought: Given the great disconnect between Wall Street and Main Street, maybe one day the economy will be gangbusters while the stock market goes to pieces. Wouldn’t that be a hoot? Read on for a deeper dive into the all the economic distortions the Fed has wrought… and why they’re about to come screeching to a halt. You’ll also be treated to another major 2016 prediction. It all comes courtesy of James Howard Kunstler. Regards, Brian Maher Managing editor, The Daily Reckoning Poster Comment: Nightmare's happen. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 2.
#1. To: BTP Holdings (#0)
The bad guy at the FED is Stanley Fisher who used to be head of the Israeli Central Bank. He is pushing for a Bail In.
He is one of the most hateful kikes in the world, and that's saying something.
There are no replies to Comment # 2. End Trace Mode for Comment # 2.
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