Quote:
Originally Posted by tabs
This means the Institutional guys are REAL Worried about the economy. Which in a normal world would dampen Equities...but that is not the case..money is flowing into Equities.
The FED REASSURES investors with their guaranteed activism. It is providing a monetary safety net. Since 2012 except for part of 18.That gives the investors license to move money into equities..so that many pension funds can remain solvent. The risk of equities becomes acceptable with the FED guarantee
Take awAy that FED guarantee and equities tank like in December. Which was a normal world response to the real .economic conditions.
The rational behind the machinations is to keep the lights on and the economy turning. Otherwise.......
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Using rates has been happening for forever. It is nothing new. Bonds are signalling the risk of recession. Stock buyers aren't so sure but they still expect decent earnings over the next 6 months.
Lower rates does not mean we are printing more money or increasing debt.
I can see a recession this year with a rate cut later in the year.