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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 690.270.0%Dec 26 4:00 PM EST

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To: Mevis who wrote (82809)5/24/2016 2:05:51 PM
From: GROUND ZERO™3 Recommendations

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Ericeira
kimberley
rayrohn

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The FED is trapped between a hard place and a rock, and they surely realize it...

While they really don't want to raise rates, they're actually forced to raise against their better judgement because they also know that long term artificially low rates does more damage to the economy in a number of deadly serious ways...

First, they realize that excessively low rates encourages spending... spending alone seems okay, but when the spenders are spending at the expense of saving due to low income flow, the overall debt problem begins to grow more and more and with more and more people going into debt as a result, especially those who can't really afford to take on more debt...

Secondly, artificially low rates encourages businesses to borrow, especially those businesses that shouldn't borrow, those who can't afford to borrow, and so on... those are the same businesses that are not doing well and should probably close down instead of taking on still more debt...

These are only two reasons the FED may be compelled to raise despite all common sense...

I'm certainly no economist, but this is my impression...

Heck, if you lined up all the real economists in the world, they still couldn't reach a conclusion...

GZ
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