09-18-2015, 08:32 PM
(This post was last modified: 09-18-2015, 08:32 PM by Roadmap2Retire.)
(09-18-2015, 07:01 PM)DRILLINDK Wrote: Definitely a big change in character concerning market reaction. Remember, in the past when the FED would announce the continuation of their ZIRP the market would react positively. Many times closing 1-2% higher and ultimately leading new ATH's. Essentially, "bad news (for the economy) was good news (for stocks)."
Recently, it appears sentiment has shifted. Now, bad news appears to be bad news. The FED appears to be out of ammo and losing control. They appear wishy-washy and conflicted as what appropriate action should be next.
Personally, I think we're in deep trouble. What about everyone else??
At the risk of sounding like the doomsayers, I agree. There have been warning signs for months if not years, and the Fed and other central bankers have been able to cover it up well by awashing the world with cheap money...and hoping to inflate their way out of the problems.
While there have always been perma-bears calling out for a crash of the economy, I think things are starting to look more and more precarious. The financial world learned nothing from the 2007-2008 crisis and its been business as usual.