Monday, September 14, 2015

Fed will not raise rates and this is why

I don't think the Fed ever really, seriously considered raising rates in the first place.

I think they wanted to create that impression, they wanted the markets to believe that rate hikes were under consideration, because they want markets to believe that the economic recovery is legitimate and that the economy can actually withstand the higher rates that they're pretending that they're ready to deliver.

But I think it's all been part of a show to mask the fact that the Fed understands all we have is a gigantic bubble, not a real recovery, and if they were to raise rates, they would prick that bubble. That's the last thing they want to do, which is why all they do is talk about raising rates, but haven't actually followed through with any of that talk.