Feds lack of confidence is becoming contagious...

[HawktimusPrime]

Dow Jones is close to a 300pt drop today. This particular article was from yesterday.

http://www.ibtimes.com/dow-jones-in...-street-weighs-fed-rate-hike-decision-2102597

U.S. stocks closed lower Thursday after witnessing major volatile swings in afternoon trading as Wall Street digested comments from Fed Chairwoman Janet Yellen. After trading flat following the central bank’s initial statement that left interest rates unchanged, the Dow rose nearly 200 points during Yellen’s speech, only to reverse and trade lower after she left the door open to hiking rate as early as October.

On the day, the Dow Jones Industrial Average (INDEXDJX:.DJI) lost 65.21 points, or 0.4 percent, to close at 16,674.74. The Standard & Poor's 500 index (INDEXSP:.INX) edged down 5.11 points, or 0.26 percent, to 1,990.20. However, the Nasdaq composite (INDEXNASDAQ:.IXIC) added 4.71 points, or 0.10 percent, to 4,893.95.

Six of the 10 S&P 500 sectors closed lower, led by declines in telecom and financial stocks. Utilities were the largest gainer, up 1.3 percent.

 

[DrVenkman]

Her message yesterday was not good. She made no positive comments on the economy and really only highlighted the risks from foreign contagion.

 

[aflachawk]

Her message yesterday was not good. She made no positive comments on the economy and really only highlighted the risks from foreign contagion.

According to most libs on this board, the economy is humming along at a very nice pace

 

[HawktimusPrime]

According to most libs on this board, the economy is humming along at a very nice pace

It would be nice if that were true, but I fear that the QE madness, and the economic issues abroad, have put the world into a corner. A corner that it isn't going to be able to scam it's way out of.

 

[aflachawk]

It would be nice if that were true, but I fear that the QE madness, and the economic issues abroad, have put the world into a corner. A corner that it isn't going to be able to scam it's way out of.

Just you know, I agree completely.

 

[HawktimusPrime]

Just you know, I agree completely.

I think it's only sensible to be realistic about this. Raising interest rates is something that ultimately needs to be done, but the fact that they are too scared to, tells you all you need to know.

FWIW, I knew you agreed.

 

[Funky Bunch]

Her message yesterday was not good. She made no positive comments on the economy and really only highlighted the risks from foreign contagion.

Did you even listen to her comments?

 

[HawkeyeHitman]

The fed does not have a damn clue what they are doing. QE4 is right around the corner. They only know how to print money. Anybody with a half a brain could see the fed created a massive stock market bubble the last six years. Nothing is based on fundamentals anymore.

 

[HawktimusPrime]

The fed does not have a damn clue what they are doing. QE4 is right around the corner. They only know how to print money. Anybody with a half a brain could see the fed created a massive stock market bubble the last six years. Nothing is based on fundamentals anymore.

Yup, it's all being played by ear, because there is nothing actually backing any of the money being printed, and there is no real sound money in the market anymore. Everything out there is pretty much just promises to pay back debt, once someone pays the interest on the money that is printed out of thin air. The interest rates are so low though, that it's not doing anything to actually help. It's just slowly and steadily pushing towards nothing.

 

[DrVenkman]

Did you even listen to her comments?

yes.

 

[86Hawkeye]

Yellen screwed up by mentioning global economic stuff.

All she had to do was say that the US inflation target had not been sufficiently met to warrant an increase at this time. Period.

Too many academic types in the Fed.

Now the markets don't know what criteria she will use in the future.

 

[Funky Bunch]

yes.

But you heard no positive comments?

http://blogs.marketwatch.com/capito...decision-and-janet-yellen-press-conference-2/


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[DrVenkman]

I heard her answer questions about risks of a recession in the us. To which she said was very improbable. However much of the balance of what she noted was that the risk of global contagion had increased and that the current labor numbers were not producing enough economic benefit.
Prior she had focused on inflation. They switched course this meeting. There is really no inflation but the environment has been very deflationary.
She could raise fed funds with little if any real impact except what many are now pointing to, putting further pressure on China's currency.
My take is that she feels the economy is slowing and she doesn't want to exacerbate that. Q2 GDP was 1.9%. Hope Q3 isn't below that.