Financial risk is rising. Treasury yields are collapsing. The rate on 13-week Treasury bills sagged to 1.42% from 2.19% two weeks ago.
The Fed will have to lower the fed fund rate to 1.75% immediately.
Meanwhile, credit is tightening and banks and financial institutions keep failing. The dollar, of course, reflecting this undesirable investment environment, is falling.
Thank you Greenspan for the glorious mess we are in. Mr. Bernanke is trying to copy your endeavours as interest rates fall to 1%.
The markets always win and have an indecorous way of humbling everybody!
More on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
1 comment:
The technical picture of the market is really weak with the SPX far below its 200-day moving average and the 50-day moving average has also crossed below it. It seems like the market is unstoppable on the downside. Should the market be shorted?
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