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[littlejohn]

FED has market headed for bigger bruising

by dangling rate carrot...

6% wage inflation is built in by the

Gov't pushing last year to get Union

contracts with big pay raises...

That wage growth isn't pixie dust...

That wage growth gets added into

consumer pricing on Most Items...

What the phock doesn't need shipping?...

Gov't Debt crisis caused the need for

more tax revenue and was behind the

push for big Union wage growth...

Economy already appears in Stagflation

mode with less volume on units...

Big, wealthy Richy Riches are pushing up

stock prices because they don't give a

chit about economy or rates...

They are just ringing up watch boards higher

because they can't grow biz now...

Average folks have limited budgets trying

to pay Higher costs on every item and

can't buy everything they may want to...

Average folks are the drive belt of the

whole economy...

And that has the economy in stall mode...

0 inflation now would still leave average

folks trying to pay for the higher prices...

FED will only lower interest rates as political

move if they do because that will be

ignoring wage inflation pushing prices

higher on items...

Market appears headed for a bruising

when reality makes media headlines...


So we watch...LJ