Tuesday, December 15, 2015

CNBC: Wall St. Expects Three More Rate Hikes in '16



Market participants expect the Fed to hike interest rates this week and as many as three more times next year, according to a CNBCsurvey of  42 respondents, including money managers, economists and strategists.

Okay you guys that believe the Fed is bluffing and will not raise rates tomorrow, let's hear your latest theories in the comments.

-RW

5 comments:

  1. Peter Schiff is saying this will be the only time they will raise them, then they will need to begin QE4, and most likely lower the rates back down due to the chaos it will create.

    Of course, the rates should have been raised long ago, then maybe all these corrections wouldn't be necessary.

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    1. I'm sorry, obviously the rates will be lowered before QE4 begins.

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  2. Raising to 1% would gouge the bubble and all hell would break loose in financial markets heavily addicted to free money. The bust cycle would erupt in earnest. Can't imagine them being so stupid (as manipulators) to actually go that far. Even if they happen to be stupid enough to start the process tomorrow.

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    1. The thought that central planning is a good idea in the first is terribly stupid. The only thing that matches their stupidity is their arrogance that they are smart enough to manage such an important thing as the price of money. If they are dumb enough to believe that they can believe anything. To us it's obvious they are responsible for the boom bust cycle but good luck convincing Fed manipulators of the idea.

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    2. Keynesian central planners are case in point of "It is difficult to get a man to understand something, when his salary depends on his not understanding it."

      So in that sense, they genuinely don't see the consequences of their actions because they choose not to allow themselves to see them. Willful stupidity. But note this has shrewd self-interest at its core. It's that self-interest I'm counting on.

      Remember, there is a double standard at play. The prison camp guard may seem utterly oblivious to suffering and pain. We might think him completely numb. Yet he'll take extra care to handle a cup of hot tea back at the barracks gently so as not to burn himself and gently cradle his baby daughter at home. And he knows the gun he holds must always face outward. His is a selective ignorance. Fed governors are the same.

      Significant rate raising at this juncture will rapidly and obviously lead to economic collapse in a way that will not allow them to evade being seen as personally responsible. That hot water will burn them. When it comes to personally getting burnt I believe they rapidly become just as smart, perceptive, and realistic as you and I. That’s why I’m betting against a rate raise.

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