Velocityshares Daily 2X Vix Medium Term (TVIZ)

[gldtimer]

2004 vs. 2015 Fed Tightening.

Way back, over ten years ago, went Greenspan increased interest rates for the first time in four years, 2004, he did so with the theoretical vs. actual FF rate being .50% restrictive.

If Yellen does the same in December she'll do so being .30% restrictive.

Now what saved Allen from turning tail and reversing himself with also determine Janet's fate...capacity utilization.

In both of their cases they are working from the same number 77.5. After Allen raised rates he was lucky enough to have the utilization rate increase eight straight months moving to over 80.

Will Yellen be so lucky, the utilization rate comes out the same day as the rate decision. If it moves up to 78 that will match and offset the rate increase. If it moves down to 77, it could mean real trouble for the market and economy.