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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (18158)	4/25/2016 7:53:38 AM
From: The Ox	2 Recommendations Recommended By Hawkmoon kathtoo Read Replies (2) \| Respond to of 33421

I still believe negative interest rates are a very temporary accommodation. Similar to all the QEs we had here in the US, where the only purpose (IMO) was to shore up and put a new (more solid) foundation under the banking industry (regardless of what the talking heads say), NIRP will not last long elsewhere. Especially within the near term future, as the US will likely raise rates again (relatively soon). Negative interest rates "are the stupidest idea I have ever experienced," the newspaper Finanz und Wirtschaft quoted Gundlach as saying on its website on Saturday. "The next major event (for financial markets) will be the moment when central banks in Japan and in Europe give up and cancel the experiment." It's interesting to me that he characterizes this as an experiment. I'd say it's more of a "painted themselves into a corner" move and won't last long at all. I find it hard to believe we are in a "one and done" scenario with FED rates. Whether or not Gundlach is simply talking his book is hard to gauge, although I suspect that's the case here. He's certainly been one of the more vocal "doom and gloomers" lately.

To: John Pitera who wrote (18158)	4/25/2016 9:44:24 AM
From: Chip McVickar	3 Recommendations Recommended By Blasher Hawkmoon John Pitera Read Replies (1) \| Respond to of 33421

when a western population loses confidence in its government like england, ecu, canada and the usa... corporations -- and private citizens -- begin hoarding money. the only solution is investment in productivity to engage the wage earner with work, because in them lies the heart of the country... not in government. debt shifts money from the wage earner to the government... it does not get spent on productive measures but used to pay down debt -- zero interest rates helps banks hoard money it does not help productivity... but the government is able to tax this money for its constant search for money. banks are no more then extensions of government rulers -- or maybe that's really the other way around...!!! don't you believe the velocity of money is declining...? that our monetary base is receding...imo negative interest rates only further destroys confidence in our future -- this infighting against the politicians self-serving themselves will not go away - as you know... their is a substantial underground economy in the rural back-waters of america and even within the largest cities... the peasants and middle class merchants will survive... but only if their cultural lives remain intact. but now the country faces an unhappy wage earner who sees the flood of migrants as a symbol of their decreased ability to earn honest wages... where in fact it is the government corruption -- now being described by sanders and trump. here's a prediction from me - if britian doesn't vote to leave the ecu... then scotland will leave both in the next round.