Friday, September 27, 2013


Fed doves make case for patience on tightening policy Reuters
The Federal Reserve must be patient in deciding when to scale back bond purchases, top officials said on Friday, with one arguing it could wait "years" to lift interest rates and another suggesting ...

What is bothering the Federal Reserve after holding down Fed Funds rate to 0 going on 5 years....we are "years away" from beginning to normalize interest rates and policies?

Economic growth is barely running at 2%, 5 years into the most dangerous FED experiement in their 100 years history, which has helped to create bubbles on multiple levels, including bonds, gov finance, interest rates, bond yields, corporate debt, stock valuations and who knows what else.

This feels like "in for a penny, in for a pound" policy making. And the model set where we will continue with the same policies even though we are not getting the results we want, so more of the same thing will eventually get us to where we need to be.

Each month adds another $85B that the FED will need to unwind at some point, most of the STIMULUS has found its way into NON PRODUCTIVE areas of economy like STOCKS.

But the new highs in stocks mostly seems to benefit the top 1% of our population, almost as deceptive as the "affordable care act", who has seen their healthcare bills go down?

I do think it could have been worse if the FED did nothing, but by now one would hope we were well on our way to a true healing and growing balanced economy not needing to be force fed $BILLIONS of printed $'s.

It feels like we HAVE NOT healed, but instead have reflated the bubbles and this leads me to conclude...they will BURST only hope is the fallout is not as bad as many predict it will be.


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