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You mean ZIRP and trillions in QE didn't create something sustainable while you have a congress that wouldn't agree that 1+1 = 2? lol.
"Asked whether the world's largest economy will be strong enough to justify an interest rate hike by mid-2015, he said "almost surely no."
This. The Fed may legitimately want out of the QE and ZIRP game, but I think there is a real chance it isn't happening anytime soon in terms of rates. If things sink enough, it wouldn't shock me to see QE back.
In the meantime, years of intervention and distortion (QE, ZIRP, etc) have created a mentality now where when the market is down 4-5%, people view it as apocalyptic. "What is this red on the screen, that's not supposed to be there, I thought?"
@scott, you say better than I ever could. I am worried of the mentality that investors are dependent on the Fed to act when the markets drop. This is not just the US either. Stocks are supposed to just go up, are they not? {sarc}
Comments
"Asked whether the world's largest economy will be strong enough to justify an interest rate hike by mid-2015, he said "almost surely no."
This. The Fed may legitimately want out of the QE and ZIRP game, but I think there is a real chance it isn't happening anytime soon in terms of rates. If things sink enough, it wouldn't shock me to see QE back.
In the meantime, years of intervention and distortion (QE, ZIRP, etc) have created a mentality now where when the market is down 4-5%, people view it as apocalyptic. "What is this red on the screen, that's not supposed to be there, I thought?"
I am annoyed with CNBC reportage these past few days...