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Napanee, Ontario | Bingo, they sure can't.
At least in the EU they are overt about their money printing - its' directly intended to lower bonds rates to keep countries afloat. Everyone is aware that is the purpose of the program, and why they were forced to start it in the first place when Spanish, Italian Greek and other country's bond yields spiked into default territory back in 2012.
Over here tho, it's all about "helping the economy". "lowering the unemployment"..... except of course, when the unemployment number was reached (due mostly to people dropping off the rolls, not necessarily getting jobs), they moved the goal posts... then it was reached again and they dropped the target altogether. And now Nearly $5 trillion printed later... a lot of people made out like bandits in the stock, bond, and derivatives market... but US is 18 trillion in the hole. Up from 10 when GW left office. What a recovery! Go recovery. Where's Tara with his "strong vibrant economy" line? sorry Tara, couldn't help that one.
I'm with Bert on his post. Not sure when, but the FED and other central banks have backed themselves into a corner. They're now reduced to One-Trick-Ponies: The only tool they have left when stuff slides is to print. To Print, or not to print. China just dumped a fortune into their markets, ECB is well into their 1.6 tillion dollar program, about another year left... looks like the baton is ready to be passed back into the western hemisphere.
If the FED doesn't, Bert is likely right that significant declines are in order on all indices. The announcement of simply not raising rates coming out of Jackson hole's meeting might be enough to stem the decline for a brief reprieve, but the systemic issues are deep and wide, and the mountains of debt that existed in 2008 have only gotten larger, problems now forked over onto sovereign levels vs company levels in the last round.
Nope,The holes in the canoe are not patched, and markets are going to be yelling for another FED bail bucket somewhere into early 2016 is my guess, maybe earlier. Peter Schiff has called this one all along and it's playing out pretty much like he's said.
Edited by OldMcdonald 8/21/2015 16:27
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