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The Fed is Crazy
The Market Bull 2018

 
 
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Volatile early trade sent the major averages into the final hour with very large losses for a second day on generally positive data. Rumor has it that Trump’s comments yesterday about the Federal Reserve being crazy spooked the markets. As good an excuse as any I suppose. For once there was actually a grain of truth to his statements, though it probably had a lot more to do with chance, than intent. As keeping the interest rates so low for so long and engaging in trillions of Quantitative Easing or QE, was and is crazy. Never mind the gargantuan debt-based asset bubbles all but certain to precipitate a repeat of the 2007-2009 crisis that were spawned as a result of the Federal Reserve’s irresponsible policies. Another item that one could argue falls into the “crazy” category is raising interest rates in the face of record debt, but then that is something of a chicken or the egg question. But if your name is Trump and your blowing trillion Dollar debt funded annual deficits to provide tax-cuts for the 10% and corporations, it makes perfect sense. Regardless I’m sure will all end up paying a steep price sooner or later, especially those of us who are heavily indebted.

The September Consumer Price Index or CPI gained .2%, on higher services costs. On a year ago basis the CPI slipped to 2.3% a 7-month low. Of late the official price or inflation measuring metrics have moderated somewhat.

This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.

You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.

Rebroadcasts, additional writings, and other entries are also available on my Blog at www.clinvestments.com

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