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Our market guest tonight says the Fed is key in the short term but is also creating a problem for the markets later.
Here with his -- -- for an Harvey Eisen chairman of right investors service holdings.
-- like -- the -- doing here.
Fed doesn't have a choice.
Fed is in a box.
On the Fed's doing what they half would do.
And -- and were you surprised at all.
That after saying that them they would raise that 85 billion dollars in purchases a month.
If the -- if the economy weakens.
Apparently investors still -- something in there they didn't like what do you make up well there was a small comment where.
The Fed said that they might.
Mind if the conditions warrant.
Start to slow -- and that kind of caught people's attention because that is really from my point is a critical variable.
But I you know in this is I guess against them to the point of -- you you know interpreting that half full glass thing about.
They made it very clear it's six and a half percent unemployment rate that is that is the -- salute touchstone for everything that's going to happen.
And -- the sell off you know -- so your interpretation has to be correct.
The market respond and the markets are always right.
So what are -- -- for the moment.
So -- we had it in your judgment.
Well given all that audit the Fed statements what we're seeing in terms of the macro.
The last three years have been exactly the -- in the stock market the first four months have gone up big.
The second four months have gone but the reason the markets went bad on those three years.
It's because there was some sense of wow the economy's getting better.
Remember how they pulled to the first quarter was so much better than they flawed and now their replies.
What is this rocket recovery of ours has been underway now for -- come July the worst ever -- that every.
If you told me that in view of the recession would be over in July of 2009.
And that we would still see high unemployment -- mean growth for years later I would assume you've got to be kidding.
But that's career well unemployment is.
Seven point 80.
Under employment picks that thirteen point eight.
Takes that in 19%.
Seemed to have this block of people.
We this unemployment is that show.
It is not unemployment.
Lou it is under training here are jobs out there that -- -- now.
Their jobs or can't be filled will also about creating jobs and poppy field paying.
We've looked at stagnant income for wage earners over the course of the past thirty years and -- three years.
And you've got two parties political parties one is pushing.
As there were -- a year response through a tremendous painful societal and economic problem right unemployment.
And the other party is pushing.
Budgets and deficits as a response.
To what is I think one of the most on imaginative responses to a deep painful societal and economic problem.
These two orthodox Sunnis have got to shed their skins and actually come up with something new and after a lot or courageous -- you think.
Of course -- 100% right but it's not gonna happen because these people Apollo.
Missions and the goal of a politician.
Is not to worry about you and me is not to do the right thing it's to get re elected half of people in this country.
Get handouts from the government.
And economically terms of the market the economy.
What is our future -- it culminated.
The economy is moving -- slow.
The powers that be tell you they want bookseller.
Because if it does its demand for money will rise interest rates who arrives.
And the amount of interest government payments will go crimson and we're setting the stage -- what you and I remember -- young guys.
It -- inflation.
So it's all a sham.
Well let's hope that they you know this -- can be resolved in favor and let me be clear the market -- so.
We're gonna get a pullback you're not limited a positive thing -- -- -- -- you.
I don't want people go -- terrified.
Well I'd I'd be sitting here thing -- -- we should just go away there because.
You you were giving us a suggestion that its moribund.
The leadership is more of them.
But the potential in the market and the economy is tremendous but I don't know without strong leadership what can be done here.
I really do not you have a horrible problem because the senior.
Citizens in this country are taking it right here.
It's a disaster and they're growing 101000 people it is forty million that is gonna be eighty million if you went silent on this is that disaster waiting to.
Actually -- appreciate.
-- is this.
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