Friday, July 15, 2016

Another Problem for Austrian-Lites Who Think the Fed Will Reverse the December Rate Hike

If the collapse in the unemployment rate is not enough...

and the record high stock market is not enough.

Here is another problem for Austrian-lites, who think the Fed won't raise rates and that the Fed will, in fact, cut rates, Consumer prices rose in June for the fourth straight month as the cost of gasoline, rent and medical care continue to climb.

This is not what a zero interest rate environment looks like,



  1. It's exactly what a ZIRP environment looks like because that's what we have, effectively zero or negative interest rates for savers as far as the eye can see. There were supposed to be four hikes this year and now it's they'll raise a 1/4 at the end of the year. It's going like Bernanke said: "No Rate Normalization During My Lifetime".

  2. at a rate of increase of 25bps annually, rates will be normalized never, because recessions weren't outlawed. Good luck getting any fiscal stimulus either with a gridlocked and polarized congress, not that I agree with fiscal stimulus, it just means the Fed is the only game in town, ergo, rate cuts in the next recession

  3. RW, you are protesting a bit too much. These chest beating posts are more likely hubris talking again.

    The chances are quite good that you are ringing the bell at the top to sell. I'm saving this post. I hope you don't remove it.

    1. In the EPJ Daily Alert, Mr. Wenzel is NOT recommending buy the market here and has repeatedly stated there is a good chance of a substantially lower entry point in the future

    2. Then why cheer lead the recent all time highs in this post. Makes no sense.

    3. Duh, we bought last year when the market was much lower, when Austrian lites were saying the world was going to crash after the December rate hike.

      I don't chase markets. I buy on weakness. We are holding S&P positions bought last year. We are just watching our profits climb.