Minimize

Welcome!

Just more over-reaction to the Fed statement

March 19, 2015

Click download link to listen on this device: Download Show

 

Discussion
13 Comments
    Mar 19, 2015 19:50 AM

    I agree with RICK…….STUPID……….

      Mar 19, 2015 19:51 AM

      concerning the FED

        Mar 19, 2015 19:53 PM

        Well the weak companies are showing their true colors by de-listing, becoming zombie companies, or by just changing. Several miners became cannabis companies last year, a few have converted to bio-tech companies, and also other sectors. When this happens the management shows their true colors, proving they were just momentum players and not ever really dedicated to their trade.

        Here is a headline I saw where this miner is becoming a social media and gaming company. Yeah…… that makes sense…..??

        “Tosca Resources signs Letter of Intent to acquire Hatch Interactive Technologies Corp.”

          Mar 20, 2015 20:53 AM

          In the UK we call these sort of things “shell companies.”
          Maybe a good allegory for a “shell game!”

            Mar 20, 2015 20:39 PM

            Bingo Silverbug Dave!!

    Mar 19, 2015 19:27 AM

    I hate to disagree with Rick but a rate hike is indeed coming. This year, not next. It is not therefore likely that the dollar will hit 1.20 during 2015 as it must now turn down on a cyclical basis to allow rate interventions to proceed. One other outcome is that as the dollar falls back we should see signs of earnings improve on a currency basis. Secondly, as the dollar falls there will be a rise in commodity prices that will further bolster bottom lines for those companies (public lists) that have strategically locked in contracts at the bottom. We should not doubt though that the market in general will pass on higher input costs to the consumer and this benefit will be shared even by those who do not actually pay higher as input costs rise for smaller firms.

    Mar 19, 2015 19:13 PM

    I think we will see a rate hike in September, unless the whole system falls apart before that. A rate hike will support the Fed/government’s recovery meme. The Fed’s next move will depend on how the market reacts to the rate hike. If there is a market collapse, then the Fed will probably cut rates and might unleash QE4; if the market takes the rate hike in stride, then we will see another rate hike next year.

    I agree with those who say that the system cannot support a rate hike due to the amount of debt floating around, but the Fed will test the water nonetheless.

    Anyhow, whatever the outcome, 2015 is shaping up to be one hell of a year.

    Mar 19, 2015 19:33 PM

    Bird,
    To be fair I did hear Rick say they might do a tiny %.25 rate hike an then that will be the end of “rate increases.” I think he said that earlier this week. Either way I suspect it will only be a little face saver rate hike of %.50 over two quarters at the most. Will indeed be a ride nonetheless!

      Mar 19, 2015 19:28 PM

      Bite my tongue! Did he say that? Sorry if I missed that comment.

      Mar 20, 2015 20:58 AM

      I think Rick has previously mentioned tongue in cheek that they might do 1/4 of a percent or even a measly 10 basis points just to show that they can do it. However I think Bird and Rick disagree because Rick seems to see no inflation in the dollar zone, ever!

    Mar 19, 2015 19:21 PM

    Obummer wants the Dow at 20K before he leaves office.

    Mar 20, 2015 20:02 AM

    Hey guys, when I clicked on Janet Yellen in a Kitco article I got this:
    http://www.kitco.com/news/2015-03-18/fed_dot_plots.JPG
    The Fed is completely dotty!
    In this case they are seeing rates near 3% by 2017.