|
Napanee, Ontario |
There are far too many pundit authors of articles like this one that fail to grasp the bigger picture. His point is that interest rates are due to rise because that will make the banks the most amount of money:
"The Fed will raise rates because that will make the biggest banks the most money. There’s nothing else that matters."
More broad based claims without any dissection of the underlying realities. These guys just don't get it. There won't be a financial system to make money in if rates are jacked. Time and time again in these 'interest rates are going up' articles, these guys miss the elephant in the room. I don't know how they do it, but they are very good at ignoring it, intentionally or other wise.
SEVENTEEN TRILLION DOLLARS.
That's the rebuttal to his whole piece. It's comically simple - you just punch in 4 or 5% times 17 Trillion (if they can count the zeros right) to see that there won't be a financial system left if they jack rates.
Perhaps the simplicity of it all is what scares people, and why we seem to never hear about this side of the analysis in these articles. Instead, guys like to get bogged down in comments about the FED putting one over on the markets and money fund managers... outthinking them into being the last line of fools.
Take this article for instance:
http://finance.yahoo.com/news/the-fed-s-dilemma--there-may-not-be-a...
"Janet Yellen’s dilemma: No way out"
------> "The Fed has a dilemma. It, of course, would like to come off of its present policy stance, but people are accustomed to it and if interest rates go up, you get an inverted yield curve with bad consequences"
BAD CONSEQUENCES. LOL. That's got to be the understatement of the year. These keyboard jockeys in the press are sharks at dressing this stuff in pretty clothes. | |
|
Fantom assets
