Excepting for the DIJA rest of the indices are in red, FTSE in deep red. Cat is out of the bag with good results, then came the housing data which dropped the index again into red, DIJA is showing some green color rest the now predominant color red. So the question where does it go from here? There is a talk going around that the correction could be deeper, well we need to wait and see if the break out levels are taken out. If so then the markets are set for a deeper correction.
The FEDS are not going to change their mind about taper anytime soon however they have come to the realization that this QE has done nothing but inflate assets, an alleged back door to creating wealth that was to stimulate economic growth and job creation.
While some contend the Fed will NOT unwind its balance sheet but hold to maturity (as the fear of deflation is still far greater than inflation) it is feared these LOW, LOW long term rates will adversely and ultimately affect principal treasury holders, ie insurance companies and banks.
The Fed has just been BUYING TIME, hoping circumstances change, but everyone knew these QEs ($$$ printing) could NOT continue without end. So NOW we have a Fed (monetary) and Congress (Fiscal) with hands tied as both are realizing we cannot SPEND themselves into prosperity.
The FEDS are not going to change their mind about taper anytime soon however they have come to the realization that this QE has done nothing but inflate assets, an alleged back door to creating wealth that was to stimulate economic growth and job creation.
While some contend the Fed will NOT unwind its balance sheet but hold to maturity (as the fear of deflation is still far greater than inflation) it is feared these LOW, LOW long term rates will adversely and ultimately affect principal treasury holders, ie insurance companies and banks.
The Fed has just been BUYING TIME, hoping circumstances change, but everyone knew these QEs ($$$ printing) could NOT continue without end. So NOW we have a Fed (monetary) and Congress (Fiscal) with hands tied as both are realizing we cannot SPEND themselves into prosperity.