“RATE HIKES? AND THE KNICKS WILL WIN THE NBA TITLE!”

By Gary Kaltbaum

May 19,2016

Headline: “In a clear message to the market, the Fed says rates may rise again in June.” Say what? Clear message? What clear message? Wasn’t it just a few weeks ago these same people said they were worried about international issues and had to stand pat for now? Didn’t Mrs. Bubble just state that they could print more money if need be? Wasn’t everybody saying they’ll be no more rate hikes this year? So we are now to believe that while around the time they were telling everybody they need to sit on rate hikes, they were also stating the opposite in meetings. Kids…we suggest to you these people would fall over in a 3 MPH wind. They change their tune on every data point, every market move and every change in the wind. They change their words based on what day it is. Clear message? We guarantee you by the time the next meeting comes around, we will hear 50 different thoughts from 10 different Fedheads all contradicting each other and all changing their tune at least once. These are people that are flying by the seat of their pants. These are people that wake up every morning and see the market go down and say one thing and then see the market go up the next day and say another thing. They get one report that looks good and it’s time to hike. They get another report that looks bad and it’s time to sit. Unfortunately, we continue to deal with a bunch of ex-tenured professors that have no understanding of markets or the economy…yet, they have their finger on trillions to try and move markets and the economy. $20 trillion of printed money, 0% rates for 8 years, negative rates and the outright buying of markets….and what have we got…nothing but a massive increase in debt and leverage built up around the globe, enabled by these same people. It is this debt that continues to undermine economies going forward. It is this debt that eventually leads to the comeuppance! Clear message? Who are they trying to kid?