Monday, September 29, 2014

Here Comes The Feds To The Rescue Again!

(CNBC). U.S. stocks rose sharply on Friday, cutting losses for the week, after the government raised its estimate of economic growth in the second quarter and consumer sentiment rose in September.  "The backdrop for a lot of this nervousness is the end of QE," Peter Boockvar, chief market analyst at The Lindsey Group, said. "We have lots of data this week, followed by lots of earnings over the next month." Stocks did not move much in reaction to a 1 percent decline in pending home sales for August, and futures were little changed after reports that personal income rose 0.3 percent in August , as expected. Earlier, protests in Hong Kong had rattled global markets and U.S. stocks about percent lower, but most analysts said the situation would not have a long-lasting impact on markets. 
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(CERR Finance).  The financial markets seem to be playing rope a dope today. Markets dropped 100 points today until Feds made a statement. That is not a bad thing but it surely shows markets are getting weary. "Caution" is the word for today. Fed policy is trying to protect big institutions, banks, and big companies from market loses. It is like trickle down economics being played out. Why don't the Fed increase the spread between how much we loan to banks instead of how much they loan to the average citizen. Banks would not exist without capital and the free money they are getting from the Feds.  Feds are trying to keep the average citizen in check by saying they will not raise rates for the near future. What does that mean? Translate - we are not going to allow you to make any money off of your bank accounts, money market accounts, bonds, CDs or anything that is considered low risk.  Overseas markets are being challenged by citizens who want more opportunities. The time for overseas rulers to share wealth to their people has come. People with billions of dollars of worth need to do more to create a level playing field for ordinary workers. Until workers feel like government is working for them (lower minimum wage, minimizing certain drug laws to kill to prison complex, making tax laws favorable to middle class, and changing big welfare laws for big pharma, energy, foreign aid, and taxes.