Pascal
08-05-2016, 01:09 PM
The market is again in a "buy everything that is big enough" type of mood.
Mostly the Mammoth stocks and the tech sector.
Utilities and housing are not attracting that much money (Interest rates will now go up.)
My theory has been for some time that higher interest rates is what will ignite "real" assets inflation, because that will force Trillion of US$ money out of reserves. This is the main reason why the Fed is afraid: once the Fed raises rates, if money escapes out of excess reserves, the Fed will either have to drastically raise rates in order to "kill" the bubble or it will have to raise rates on excess reserves, which means giving away more money to the TBTF banks. Only a Hillary Presidency will accept that.
Pascal
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Mostly the Mammoth stocks and the tech sector.
Utilities and housing are not attracting that much money (Interest rates will now go up.)
My theory has been for some time that higher interest rates is what will ignite "real" assets inflation, because that will force Trillion of US$ money out of reserves. This is the main reason why the Fed is afraid: once the Fed raises rates, if money escapes out of excess reserves, the Fed will either have to drastically raise rates in order to "kill" the bubble or it will have to raise rates on excess reserves, which means giving away more money to the TBTF banks. Only a Hillary Presidency will accept that.
Pascal
37271
37272
37273
37274
37275