There is a sense that the FED has been backed into a corner on further rate hikes...
The Street has convinced the FED that any more rate hikes will derail stocks...and the brokerage community is willing to throw a tantrum to prove it...
Result: The FED is totally out of the picture for the foreseeable future...
THIS MEANS A GREEN LIGHT FOR GOLD AND OIL TO GO UP...
AND FOR THE BOND MARKET TO GO DOWN...
THE FED HAS BEEN FORCED INTO A CORNER BY WALL STREET....THEY SIMPLY WILL NOT RAISE RATES FOR A LONG LONG TIME TO COME...PERHAPS UNTIL AFTER THE NEW YEAR... AND EVEN THEN THE MARKET WANTS A DECREASE IN RATES! NOT A "DOLLAR PROTECTING" INCREASE...
Bernanke's "excuse" is that he's afraid of the housing bubble crash...and this is true.
But Bernanke also has to watch the dollar, the bond and the price of oil and gold.
IF COMMODITIES AND BOND TRADERS SENSE THAT THEIR "NEEDS" ARE NO LONGER ON THE FED AGENDA... THE FED WILL HAVE BIG TROUBLE VERY SOON...
See the recent bump up in gold and oil....
