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Wednesday, September 16, 2015

My vote: Rate Raise

I think Yellen has a lot to consider but when it comes down to it, I believe the rates are going to be raised.

The US has been on emergency measures for 7 years now, and its time. The economic reports of the first and second quarter have been positive, and the US economy can stand it. It doenst mean that the markets wont have a temper tantrum and slide a bit, but its for the economy's medium and long term good.
And if putting the rate hike off everytime there is some cloudy skies, then when? There will always be a problem here and there.
But the most important point I believe is this, they gotta put some quivers back in the bow. With the basket empty of arrows, what is going to happen if there is another big crash? For example, when the first crash happened in 2000-2001, the Fed was able to start easing interest rates in order to mitigate some of the severity of the crash. Its time for the market to give some of those arrows back. It can't keep holding on to them, it needs to climb on its own. Am I saying raise rates by 2%? No. But I don't think it will be .25% either.

My guess?    .50% Raise. One half of a point.

To not do this is just pussing out. It will show weakness from the Fed, and less faith in the markets. Yes the markets will stumble making me money on my QQQ puts. But I could always use the money.

Tradinginsider

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