It is easy to understand why the Fed had chosen to hold once they have decided. Prior to that almost everyone thought they would taper. They would eventually but not yesterday, and that day draws closer.
We are more interconnected than ever. Monetary authorities especially the Fed cannot hope to ignore what's beyond the US when the ricochet effect returns faster than you can dodge. Of course they can't admit this fact yet.
Nobody is anywhere near consistently right about the economy. We just manage risks and the Fed watch the government like a price taker and respond accordingly. The US government is getting a fail grade.
This is the way the markets work these days. A Ponzi number that taps on sentiments and hearsays and definitely a much more dangerous game to beat than in the traditional gambling den. The sins of casino capitalism, financialisation and short termism have turned the marketplace into anything other than servicing real commerce. Sad indeed
ReplyDeleteImagine how the rest of the world's markets when helicopter Ben pulled his "least expected surprise" before leaving the stage. The markets (bonds and stocks - together) rallied, then retraced back most gains. This is really a state of markets with no sense of reality but high on casino-ism. Maybe even satanic - as real production and consumption are not really happening, people are just gambling their time away and worst the distribution of wealth between the haves and the havenots widens only further. Time for real prayers and a good dose of discernment. BTW a good piece to read (and a CNBC video to watch) is available at http://www.zerohedge.com/news/2013-09-19/druckenmiller-blasts-biggest-redistribution-wealth-poor-rich-ever - Druckenmiller Blasts "The Biggest Redistribution Of Wealth From The Poor To The Rich Ever"
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