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Well for more on the market let's bring in new capital president and marshalling an engine you've been on the show several times saying not to worry the market shouldn't be worried about.
The Fed move -- away and tapering off but at this point you've got.
People even better say that it's gonna happen sooner rather than later even at that president -- aren't making comments today bits I don't know but you jobs go.
If that pulls away happen.
Yeah I I think a lot of people are fixated right now on the stock market performance of their for talk about when does the tape wasn't -- gonna begin.
Armed and yet that the Fed's dual mandate is focused on maximizing.
Employment com and to a certain extent and and the stability of prices.
-- -- with inflation.
Being benign right now and in and really not a threat and with the employment numbers not where.
Got -- Fed Chairman Bernanke said he wanted to see them.
I don't see how he pulls back.
At this point it starts to -- process.
Stock market is not the focus it it has been a key driver of quitting the wealth effect and and stocks have been driven a large part by the rates but that's not the -- ephedra.
We got some -- -- percent -- Friday's elegance of six point 5% would -- but that is looking for a fair enough because also the issue of inflation and and bullet actually was talking about -- is making these comments that.
Innovative place -- that where we need to be right now but he said that.
The surprising though deflation maybe the -- can maintain.
The bond by -- so they they keep all the possible they keep the party don't.
I think that's right I think the number on Friday the may report was this I think people point the goldilocks number where it was just good enough to keep the Fed staying the course not good not not better than that to have the Fed change that course -- -- -- -- to -- they're pretty loud right now one is the stock market bubble -- On an and it has the Fed created this bubble and I think 75% of economists -- polls said no -- -- also the former Fed Chairman Greenspan and other market pros say that the Fed steps out.
Confidence pours in and the market takes off well those are actually in conflict with -- one another which is why I think that the Fed staying the course right now is we're we're gonna see until they get more information.
Yet that's essentially a pressure -- -- referencing 75 a percent economists say that word we're not this top level you disagree with that Ferrer nothing Jamie die with the chairman.
And CEOs saws that titles a JPMorgan he was speaking in Chinese said that you -- if if trick it -- -- has to pull back if interest rates go higher.
Who volatility is on its -- summer we don't need to see volatility right now.
I actually think he even used the word out how scary it would be endlessly rates normalized -- but I while but I wanted to use that -- -- I want to bring that back a bit scary to me was Lehman Brothers going bankrupt scary to me was that was the force done marriages of BofA and Merrill.
You know JPMorgan and Bear Stearns not knowing -- -- and get bank run that was really scary I'm not so sure I called this environment based on the market performance.
I'm not -- called the scary -- disrespect to mr.
This doesn't scare me right now I do think the Fed will have to -- Roth but I don't expect him to begin the process at least after second quarter results are in to see in the GDP how would perform -- the effects of the tax -- see the effects of these -- cut.
And I think that's what they wanna see we have a bunch of job reports coming up over the next cup for few month we get more information is going to be better.
We if you -- another issue that you that you you talked about humility -- clients about -- more securitization of the markets that we're not back 2007 don't know what was that type of scenario again but we are seeing that back -- secondary market.
Picking up as far as equities goes whether it's real estate.
Investment trust -- such an in shadow banking yes this does is a good thing because of the way the term shadow banking and they they -- off.
That's that's bad that's would take us down by years ago.
I think the regulators would not wanna hear these -- these used again I try.
I didn't dare say that synthetic CEOs that acronym is now being used again but for the economy at home we have bank lending return in a meaningful way we have corporate balance sheets really -- stabilize and actually a misfortune -- -- Around some of these balance sheet and corporate profits are up the third leg of the stool we thought we think -- securitization making returned.
Let's hope for better transaction but that will allow I think the Fed to pull back knowing there's other sources of of liquidity and other -- of investment in market activity taking place to replace the -- -- back.
You know -- let you look overseas it would happen Nicole mentioned -- Japan.
Oh is it coming out saying that the Japanese market the US economy is -- on the upswing so tough to play the game here on gents thank you very much impressed late night.
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