Friday, June 16, 2017

Stocks Collapse, Regain on Thursday, Post-Rate Hike by Fed

All indices finished lower on Thursday and the declines continued into Friday morning with all the majors down shortly after the open.

The continuing weakness in stocks was exacerbated by the FOMC raising the federal funds rate 25 basis points, to 1.00-1.25%. This tiny move seems to be too much for market participants to bear, given that this is the third increase in the past seven months.

The Fed appears intent - for now - to hold rates at this level, but also mentioned - in its press release and news conference following the rate decision - that they would begin addressing the balance sheet of nearly $4.5 trillion, by rolling off up to $10 billion a month in Treasury, agency, and mortgage-backed securities, a plan that would take roughly 30 years to complete.

While the media hasn't even taken up a position on the Fed's plans because no on-air personality even understands what it means and only one percent - being generous - of the general population has any idea of what the Federal Reserve actually does.

In essence, the rape of the global economy by central banks will continue until either the system implodes or the entire planet is enslaved by money-changers.

That's all for now. Make sure to check back over the weekend for the Money Daily weekly wrap-up.
Post a Comment