When the likes of Morgan Stanley double their profits...as today...the FED is NOWHERE NEAR DONE RAISING RATES...
SPECULATION IS ALIVE AND WELL IN THE US ECONOMY...AND IT'S GOING TO TAKE MANY MANY MORE RATE HIKES TO KNOCK IN DOWN FOR GOOD...
There is huge liquidity "trapped" in the corporate sector even yet...hence the ample money available for M&A, debt issuance, AND commodities specualtion.
ULESS AND UNTIL THE BIG MONEY FEELS THE FED'S TIGHTENING OF MONEY...THE INFLATION THREAT WILL CONTINUE IN COMMODIITIES AND THE REST OF THE ECONOMY.
ALAS, YOU CAN'T "SOLVE" THE CURRENT INFLATIONARY SURGE MERELY BY BASHING THE CONSUMER ALONE...
THE FED SIMPLY MUST GO AFTER THE BIG BROKERAGES AND THE INVESTMENT BANKS...AS LONG AS THEY ARE HAVING MASSIVE PROFITS...ON THE ORDER OF THE OIL COMPANIES...THE FEDS JOB IS NOT DONE.
RATE HIKES FOR THE REST OF THIS YEAR ARE NOW INEVITABLE...
A 7% FED FUNDS IS ALMOST A GIVEN...TO SOAK UP THE GREENSPAN HYPERLIQUIDITY NOW TRAPPED ON WALL STREET.
