....They "gotta."
Today's rally about nutthin will be given back tomorrow...or perhaps even before the 4PM closing...
This market is totally confused and disoriented. Bernanke has a LONG LONG WAY TO GO....before the Greenspan Bubble is out of the economy...
Housing is only now barely starting to come back down off bubble levels. And consumer debt is still riding the home equity loan scenario like it's 2004!
Simply put Bernanke has to keep raising rates until Wall Street sobers up and realizes that spending "asset inflation" is NOT THE WAY TO GO...
The asset inflation so beloved of Greenspan is now finally sloshing over into commodiities like gold and oil...and in the long run that is bad news for the economy and the markets.
Gold is doing fine today... And EVERY micro vibe in the oil market is seen as "rally bait" and today everyone is taking it the bait hook line and sinker... Tomorrow we'll see the "sinker."
What kind of message does that send to the New Fed...
KEEP ON KEEPING ON...WALL STREET "DOESN'T GET IT YET."
SO RATES WILL BE GOING UP FOR THE REST OF THIS YEAR, OR UNTIL THE HISTORIC NORM OF 7% IS REACHED ON FED FUNDS....
AND GIVEN THE CURRENT STATE OF THE BUBBLE?
EVEN 7% MAY NOT BE ENOUGH!...AND WOULDN'T THAT BE INTERESTING...?
Quite frankly, it looks like the Fed will have to raise rates INDEFINITELY just to protect the dollar from all of the deficits...and the war spending.
