Replies to post #241904 on SPDR S&P 500 (SPY)

[TheWatcher51]

Yeah that's a blindside for me... I assumed we were on a path to "normalcy"... and those things you posted about may be closer to reality then not... but all I know is that with all this speak they risk losing credibility more then they have already... perhaps that's the point... the ultimate middle finger to Donnie 2 scoops would be to tank the Econ and market with it to ensure he loses also.... idk strange stuff and strange times to boot... spy

[AnG5640]

To piss us off and give DJT the finger for not keeping her on ;)

[TheWatcher51]

After thinking about it... perhaps the fed knows they are screwed and bought all these assets to inflate the market but didn't have any real plan to let them go until they had to... now that they have them on the books they don't know how to get rid of them and that may be a nail driven into the Feds coffin...? Spy

[risk on]

If anything the reversal was in the economic outlook, as that IS what drives fed decisions, yes? It seems what was certain is not so certain. Once we scrape off the facade of hype we get some economic data that is NOT so rosey. Consumer debt is spiking , job growth has flattened , wages are up very modestly , but housing prices, car and other durable good prices are up, which is doable given the easy credit and lower rates. However , credit is no way to live . The fact remains , most Americans don’t have enough squirreled away to get through an out of the blue expense .

I think Chair Yellen may just be saying that the economy is not as rosey as was thought?

[risk on]

“.... misjudged the strength of the labor market, the degree to which longer-run inflation expectations are consistent with our inflation objective, or even the fundamental forces driving inflation,"

That last part “ fundamental forces driving inflation “ , means DEMAND, or lack there of, the same issue that’s been plaguing this economy since 2008. They still can’t see organic demand , and she’s already said that QE did NOT have the desired effect in that vein, it only increased the wealth gap. So, I wouldn’t be too giddy expecting more QE or other easy money fed tricks. I think it was a rather dire prognosis , like Morgan Freeman “ the Comet is still coming “

Without demand, this economy can not have a boon, and supply side theory has NOT worked to create said demand .