You're watching...
Barron’s Online Stocks Editor Bob O’Brien on the market’s reaction to the Fed minutes implying further stimulus is unlikely because of the impro...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Well my colleague was claimant today.
An exclusive interview with Treasury Secretary Timothy Geithner among the issues they discussed.
While the Treasury Secretary sees as the biggest threats to the economy.
But that's -- big risk you see out there still is Europe still.
Facing a very difficult very challenging period likely to every -- gross don't attract the most important that's that's one.
You have obviously there did -- about Iran and oil prices.
Melissa hurting economy today people can still feel an apartment but today.
Secretary Geithner went on to say it's all about politics as well -- -- -- Buffett ruled as part of the administration's balanced plan -- Bring down long term deficits.
Joining me now Bob O'Brien stocks editor Barron's online great to have you here Bob thank -- -- your reaction to the treasury secretary's -- Yeah this kind of pushing the the party line once again trying to -- politics is going to be the solution to this something that hasn't been the case.
In the three years of the Obama administration I'm not sure what problems they've -- so far.
And I'm not sure what -- can remedy in the time ever meaning an office.
-- and today the market through taking a positive ADP jobs report.
Dismissing it focusing seemingly on Europe.
Your reaction today is -- relatively.
Significant sell well it was it was one of those curious things clue where.
Good news for the economy now means bad news for at the equities market because keep in mind of course.
Equities from last -- roughly two years have been propelled higher.
By actions of central bankers the Federal Reserve is basically -- priming the pump on the economy flooding the system with money.
Yesterday we got the Federal Open Market Committee meeting minutes.
And they basically -- said.
You -- any further stimulus from the Fed is likely off the table because the economy seems to be doing well.
So now we're looking at this a fourth straight month where we got 200000 jobs created.
In the economy and the Fed's basically said we've taken the training wheels off the bike.
We no longer have to hold onto the handlebars economies on its own.
So investors are reacting with pessimism about that.
Reacting with a pessimism is that the appropriate.
It is that the appropriate emotion.
Because what we are seeing is an improving labor market we're -- all sorts of positive signs it seems to me.
Let's look at the contrary indicator here would be.
That hey things are getting so much better that we don't have to go to the to use -- Chrysler won't we don't have to go to the Fed for further stimulus.
-- well we've we've you know we've really gotten so used to the shoulder from the Fed that the Fed is just.
Kind of like that benevolent grandparent who's just constantly -- -- candy but out of the parent sight lines and we've really gotten spoiled by that appetite of sugar from the Fed.
Same thing happened in Europe basically Central Bank actions there are.
Weren't sufficient to keep buying those Spanish bonds and the Spanish bond -- the took place.
This morning actually was a disaster so.
-- round the globe it looks as though central bankers are kind of pulling back from their effort the try to keep jump starting global economies and if that's going to be the case.
We're at least going to transition from a time when we're we've got an artificially stimulated economy.
21 of growing organically.
And right now that might be a fellow patch -- follow patch.
Movements we've put Africa thank you for except -- from Mike farmer -- it's a lot -- Bob O'Brien thanks -- -- -- --
