After seven years of charades, the Fed hiked rates in December by .25%
Stocks had gotten a little ahead of the fake recovery, rising for seven years straight based upon hopium, lies, bullshit, mass layoffs to fund stock buybacks, and of course printed money...the usual factors that make up a solid bull market:
One of these is not like the others...
Fed funds (black) with Value Line Geometric Index:
Corporate profits were collapsing amid non-normalized rising interest rates, for the first time in U.S. history, but that was a minor detail. To be ignored...
Consumption sentimentality, had been gamed higher by seven years of Faux News, sponsored by consumption addiction...
Treasuries were signalling that the fake expansion was over, but what do they always know?
Carry trades were a little confused by this chicanery as well...we had never seen the Fed raising rates while carry trades were unwinding. It was going to be interesting...
Then came the long awaited lift-off...
Dec. 7th, 2015:
Wall Street had an immediate hissy fit over the .25% increase, because they were used to monetizing poverty at only 0%...
Therefore, stocks lost 14% in a straight line. I mean as soon as Wall Street's bonus was paid on December 31st...
There were two scenarios on the table surrounding the Fed rate hike - immediate implosion or delayed implosion. We know which one is well underway...
