Salient to Investors:
David Stockman said:
- The Fed is on a jihad against retirees and savers.
- 80 months of ZIRP has not helped the economy because we are at peak debt, with US business $12 trillion in debt, versus $10 trillion before the crisis.
- The massive money printing has all gone to Wall Street: into stock buybacks, M&A, etc.
- The weak US economy is due to a lack of investment over the past 15 years and uncompetitive US labor costs.
- China’s debt has increased from $2 trillion to $28 trillion in the past 15 years and created a house of cards with enormous overcapacity and huge speculation that is beginning to deflate.
- If the Fed raises rates unequivocally expect a long market correction: if it does not raise rates expect a short-term relief rally before a huge correction. However, if the Fed raises rates today, expect them to hedge by saying they are ‘one and done’.
Read the full article at http://davidstockmanscontracorner.com/david-stockman-interview-on-yahoo-the-fed-painted-itself-into-a-corner-confidence-in-the-casino-is-headed-for-a-fall/?utm_source=wysija&utm_medium=email&utm_campaign=Mailing+List+Mid+Day+Friday
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