Featuring Senator David Vitter (R-LA); Senator Elizabeth Warren (D-MA); Marcus Stanley, Americans for Financial Reform; Phillip Swagel, University of Maryland; Moderated by Ylan Mui, Washington Post; and Mark Calabria, Cato Institute.
Here is a direct video link.
Elizabeth Warren joins the discussion at 36:35.
After 2 years of talking about raising rates, the Fed couldn’t even ‘risk’ a .25 increase. The markets are selling off on the revelation that central banks are out of ideas and the global economy is sinking. The German Dax (Europe’s ‘power house’ economy) is off another 3% today, taking its decline since April to just under 20%. Leading indicator?
Bill Fleckenstein, Fleckenstein Capital, analyzes what he believes is the problem with the Fed and provides his own market outlook. Here is a direct video link.
The US Fed has bluffed again, promising a rate hike and chickening out. In doing so they admitted that the global economy is faltering and they believe that any move off zero rates will quicken its demise. If Ms Yellen were honest her statement would say:
” We messed up. We lowered rates for years to keep pushing debt-fueled consumption and we bankrupted the world. Then we bailed out the most reckless actors with public funds and have been funneling cash to those same criminals ever since. Now the system is so broken we are powerless to improve it. All we can do is talk brave and hope for miracles before people realize the magnitude of our errors and come after our heads.”
