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That said, not everyone was shocked - as we also reported one bank made the explicit case not only for no rate hike but for further easing - as first reported here last weekend, "Goldman said The "Fed Should Think About Easing."
This is what we added last weekend:
What one should most certainly pay attention to, however, is what Goldman says the Fed will do - you know, for "risk management" purposes - because as we have shown countless times in the past, Goldman runs the Fed.
As such, forget a September rate hike. Or perhaps Yellen will listen too carefully to Hatzius and instead of a rate hike, shock absolutely everyone, and instead of a rate hike the Fed will join the ECB, SNB and Riksbank in the twilight zone of negative rates. That, or QE4.
And why not: after both the Swiss National Bank and the Chinese central bank crushed investors who thought the banks would never surprise them, why should the Fed not complete the 2015 trifecta of central bank turmoil? After all, the money printers are already running on "faith" and credibility fumes. Might as well go out with a bang.
Not only is this precisely what happened (yes, the Fed gave its first ever NIRP hint ever) but more importantly, we got the latest confirmation that when it comes to policy, anything that Goldman wants, Goldman gets courtesy of a few clueless lifetime academics in charge of the US money printer.
And there you have it: no rate hike until mid-2016, which as we said previously, means no rate hike at all since the "apolitical" Fed will never hike just before a presidential election, and more importantly, by then the epic inventory liquidation-driven recession will have already started, making the only question that matters in the summer of 2016: NIRP or QE4. Everything else is noise.
I wonder how Advisor's are talking to their client's about their safe money in this climate? Is everyone saying get into MYGA's and wait for the rates (for those that don't need income) to go back up? Or maybe half in something indexed to grow and something in a myga....I know I know, worthless to take guesses on something that is based on individual circumstances.
On a side note, I would like to see an indexed annuity that has tactical asset allocation with some funds participating in paper gold or reits...
That said, not everyone was shocked - as we also reported one bank made the explicit case not only for no rate hike but for further easing - as first reported here last weekend, "Goldman said The "Fed Should Think About Easing."
This is what we added last weekend:
What one should most certainly pay attention to, however, is what Goldman says the Fed will do - you know, for "risk management" purposes - because as we have shown countless times in the past, Goldman runs the Fed.
As such, forget a September rate hike. Or perhaps Yellen will listen too carefully to Hatzius and instead of a rate hike, shock absolutely everyone, and instead of a rate hike the Fed will join the ECB, SNB and Riksbank in the twilight zone of negative rates. That, or QE4.
And why not: after both the Swiss National Bank and the Chinese central bank crushed investors who thought the banks would never surprise them, why should the Fed not complete the 2015 trifecta of central bank turmoil? After all, the money printers are already running on "faith" and credibility fumes. Might as well go out with a bang.
Not only is this precisely what happened (yes, the Fed gave its first ever NIRP hint ever) but more importantly, we got the latest confirmation that when it comes to policy, anything that Goldman wants, Goldman gets courtesy of a few clueless lifetime academics in charge of the US money printer.
And there you have it: no rate hike until mid-2016, which as we said previously, means no rate hike at all since the "apolitical" Fed will never hike just before a presidential election, and more importantly, by then the epic inventory liquidation-driven recession will have already started, making the only question that matters in the summer of 2016: NIRP or QE4. Everything else is noise.
I wonder how Advisor's are talking to their client's about their safe money in this climate? Is everyone saying get into MYGA's and wait for the rates (for those that don't need income) to go back up? Or maybe half in something indexed to grow and something in a myga....I know I know, worthless to take guesses on something that is based on individual circumstances.
On a side note, I would like to see an indexed annuity that has tactical asset allocation with some funds participating in paper gold or reits...
