Tuesday, December 25, 2018

The Grinch That Stole Christmas

Merry Christmas everyone... except if you are long stocks in which case Santa most certainly put a lump of coal in your stocking making it the worst December in a very long time.

So, who is to blame? According to Mr. Trump, the Fed Chairman is guilty of “not understanding markets” and would love to boot him out as he did with more than a dozen other top officials in his administration. Needless to say, I strongly disagree; the Fed’s independence is crucial if the dollar is to remain the global reserve currency. Nevertheless, yes, the Fed is probably raising rates a bit too fast given the health of the global economy, which is not quite robust (Europe is struggling and China is ramping down its growth).

Then again, with US equity markets previously showing every sign of “irrational exuberance”, it was the Fed’s duty to take away the punch bowl before the prom turned ugly. Let’s not kid ourselves: rates were raised mainly to bring down stocks and cool rampant speculation, not because of higher inflation concerns. Given that Mr. Trump’s sole presidential claim to fame was measured by the Dow, his anger is understandable.

So, yes, Mr. Powell is the Grinch. Then again, this is precisely what he should be doing.

                                                 The Donald And The Grinch

1 comment:

  1. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius, call/whats-App Contact Number +918929509036 via email:(urgentloan22@gmail.com) Thank you.