Friday, November 20, 2015

WSJ: Barring Unforeseen, Fed Hike Coming in December

Paul Vigna writes at WSJ:
Barring some dramatic turn of events, the Federal Reserve will raise interest rates at its December meeting.

For those of you who believe that the Fed is bluffing, feel free to leave your crazed theories in the comments.

-RW

8 comments:

  1. Wenzel, it is a bluff.

    You will have to shutdown your site after the Fed doesn't raise rates in December.

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  2. I also agree that's it's a bluff. While I certainly don't possess the economic insight that you do, Mr. Wenzel, logic would tell me that a raise in interest rates would cause the economy to stifle. This could be minor or dramatic, but either way, I don't think Obama is willing to take the chance of this happening under his administration. I do believe he'll do what he can (keep rates low, print money, spend money, etc...) in order to continue to prop up the economy (albeit artificially) before he kicks the can to a Republican president and mayhem ensues.

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  3. I'll bite. The US economy is still moribund but the geopolitical situation has changed. Due to the (false flag?) Paris terror attacks and the one in Mali, TPTB are getting a bounce in the share prices of some mega-corp merchants of death on the hopes that the perpetual war will get hotter and therefore better for business over the medium term. These big caps are large enough index participants to keep Dow and S&P in the green. Now, over at 0Hedge they are reporting the Fed has hastily arranged a meeting for Monday specifically to discuss rates. Could it be the Fed is using the "war bounce" as cover to try and sneak through a credibility hike during the upcoming, shortened holiday trading week? Is this a concerted effort? Banksters and warmongers go together like peanut butter and jelly.

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  4. I think they are bluffing (what else can they do?) but if they somehow do raise them it will be by a teensy bit and the pain will be too much to stand causing them to lower it back to zero again shortly thereafter.

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  5. Wenzel, I bet you an ounce of gold youre wrong, but I know you wont take that bet ;)

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  6. The last time there was talk of an impending rate increase, the stock market took a blow and low and behold, no rate hike due to the then shakey market conditions. Just sayin'.

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  7. I don't have to leave a "crazed" comment because I have put my money were my mouth is and taken a market position that the Fed will not raise rates. I only wish I could bet RW personally on the matter to make it more interesting. :)

    To be fair, the rate raise could come, but if so only as window dressing to manage impressions. And only to be promptly reversed within 12-18 months. If you doubt that, just look at recent yield curve shifts. Just sayin'.

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  8. i'm saying yse they will too. last chance before election season.

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