[expat_panama]

Somehow I always thought that the Fed hike was needed to stop inflation as measured by the PCE. It's not there, so why is she talking hike talk?

[Alberta's Child]

The only way for the Fed to effectively prop up the economy is through interest rate cuts.

If interest rates are effectively 0%, then the Fed's interest rate policy is like a Ferrari without any fuel. It looks great, but it won't get you anywhere.

[Tax-chick]

“Why Are Democrats So Worried About A Fed Rate Hike?”

Because the economy, such as it is, is running on nothing but the fumes from effectively-zero interest rates.

[From The Deer Stand]

Democrats and their global-warming leader Obama own the economy. Period.

[Lurkina.n.Learnin]

At this point I wish the FED would take a vow of silence.

[expat_panama]

Oops --distribution day as stocks fall in rising volume!  Good morning everyone, and the count's now 7 for the NASDAQ and 6 on the S&P500.  Futures are whatever we want them to be as this page says they're tanking and this one's rosy.  So we can forget metals futures and just see that a downturn continues w/ gold/silver have now fallen to $1,050.90/ $13.99 (!).

For reports, today's claims day:

7:30 AM Challenger Job Cuts
8:30 AM Continuing Claims
8:30 AM Initial Claims
10:00 AM Factory Orders
10:00 AM ISM Services
10:30 AM Natural Gas Inventories

Elsewhere:

• Can Cruz close the welfare spigot enough to make illegals self-deport?
• Cutting government down to size   Republicans can take their cue from postwar Democrats
• Oil Speculators Risk a 'Short Squeeze'
• Gold Standard through Rose-Colored Glasses - Binyamin Appelbaum, NYT

[Diogenesis]

The hike is mentioned because the FED wants power.
There is no power now — except for rate hikes.

[wbarmy]

What is the Baltic Dry Goods (IIRC) index? That used to be a very good identifier of hard times coming.

[george76]

Same reason that arsonists carry gas cans and matches.

>> why is she talking hike talk?

[usconservative]

-- Banking giant Citigroup says there's a 65% chance of a recession next year.

We've been in a recession since 2007.

[uncommonsense]

When you are out of ammo, at some point you have to reload before the next emergency. It’s too late if the emergency is in place and we all know it’s been knocking at our door for quite some time.

[Lee'sGhost]

“We do worry about derailing what remains of the post-Obama economy.”

How do you derail something that is already derailed?

[mdmathis6]

A rate hike makes any further debt growth incurred by selling US treasuries start to go vertical in terms of domestic taxes needed to service the new debt. Any old debt bonds expiring and traded in for higher interest paying treasuries will explode our public debts beyond sustainability in terms of taxpayers being able to service that debt!

[TexasCajun]

Why do I feel like it's been a 7 year recession?

[upchuck]

The last paragraph of this article is a classic:

Given so much doubt, now is not the best time for the Fed to start "normalizing" interest rates. And, no, we don't worry about "derailing" Clinton's presidential campaign. Voters will do that. We do worry about derailing what remains of the post-Obama economy.

Perfect!

[CPT Clay]

.25 per cent is not going to crash anything.

[Diana in Wisconsin]

“While the world was leveraging itself to the hilt, governments and big banks were manipulating virtually every major market for, respectively, political gain and trading profits.”

And therein lies the rub!

http://dollarcollapse.com/money-management/money-is-becoming-unmanageable-hedge-funds-post-losses-face-outflows/

[Mase]

For what it’s worth, I received this information this morning. I can’t vouch for the accuracy, but when IBD says we’re headed south, I’ll listen.

#1 On Tuesday, the price of oil closed below 40 dollars a barrel. Back in 2008, the price of oil crashed below 40 dollars a barrel just before the stock market collapsed, and now it has happened again.

#2 The price of copper has plunged all the way down to $2.04. The last time it was this low was just before the stock market crash of 2008.

#3 The Business Roundtable’s forecast for business investment in 2016 has dropped to the lowest level that we have seen since the last recession.

#4 Corporate debt defaults have risen to the highest level that we have seen since the last recession. This is a huge problem because corporate debt in the U.S. has approximately doubled since just before the last financial crisis.

#5 The Bloomberg U.S. economic surprise index is more negative right now than it was at any point during the last recession.

#6 Credit card data that was just released shows that holiday sales have gone negative for the first time since the last recession.

#7 As I mentioned yesterday, U.S. manufacturing is contracting at the fastest pace that we have seen since the last recession.

#8 The velocity of money in the United States has dropped to the lowest level ever recorded. Not even during the depths of the last recession was it ever this low.

#9 In 2008, commodity prices crashed just before the stock market did, and late last month the Bloomberg Commodity Index hit a 16 year low.

#10 In the past, stocks have tended to crash about 12-18 months after a peak in corporate profit margins. At this point, we are 15 months after the most recent peak.

#11 If you look back at 2008, you will see that junk bonds crashed horribly. Why this is important is because junk bonds started crashing before stocks did, and right now they have dropped to the lowest point that they have been since the last financial crisis.

[Buckeye McFrog]

Don’t worry. If any naked pictures of Yellen and Rosie O’Donnell exist, the Clintons surely have them.

[usconservative]

Do you SERIOUSLY think there's no inflation?

Bought food lately? Up to the last year one could say that about fuel also, but these low prices aren't going to last forever.

Seniors are getting financially KILLED by 8+ years of 0% interest rates. Combined with 0% COLA's for Social Security this country's Senior Citizens are falling into poverty level at an alarming rate.