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So yesterday unexpectedly.
Two hours before the market closed Ben Bernanke and fed said we're not -- which -- so.
Just surprising -- basically renamed the month of September -- taper.
Basically guarantee that that would happen and then it did it and the market London that it didn't happen -- record highs for the Dow and the S&P which means you made money yesterday.
Today will -- the big board we had a -- the Dow's down seventeen points but it is funny note that that the client comes.
After a report on previously owned homes those sales spiking in the month of August that was a great report -- you would expect the market be up on something like that.
We're gonna talk about what.
Fed chief Ben Bernanke did and why he did it -- to dig into it a little bit more with -- -- -- -- CEO of -- shares.
An investment manager thinking -- for coming on it to be here Lauren.
-- I united there's so many different actions we can go with this but -- you understand why Ben Bernanke said let's not -- didn't say when he would taper.
Yeah I think it's all about big.
-- start tapering which is probably bad news for investors over the long term because it means the economy isn't looking that well.
Played an -- eventually we do want interest rates to go up if we're -- you -- you understand them money at a Canadian -- they did actually hear innings and -- -- a pace they'll find the economy is not strong enough for the evidence is something it's good sentiment some minutes that he couldn't make.
The case that it was good enough.
But the market was read -- -- red taper at some -- -- the -- upright and every president that's right we -- is gonna say I'm a little leeway and a small want to start and -- million dollar -- among.
Yeah that -- American citizen he says yes absolutely I mean it was kind of a free 14 of the burn out he did back kind of put a punch into.
This -- stimulus program in the market would -- okay that's what we're expecting but instead.
He didn't he surprise ending -- so we had record high it's okay is there -- -- political about his decision.
I think so I think he's looking out ahead at least over the next couple weeks in a potential government shut down here in the US looms so that could be bad for the economy.
The other question is you know I was wondering how he's gonna set up his potential successor and on later into the fall and that could be something that.
I went venture is that Bernanke wants thing -- this.
Fed Chairman who started the tape I am -- drunk.
I think of the great thing for him to be known for me to start -- to begin to finish something that's probably a nice from a complete cycle but.
No way they'll do that -- -- take on a third term I know he said.
He doesn't want one and the president basically said he doesn't want until Wednesday at any he could have -- there yet he could.
I don't think so I think he's on his way out Democrat and I think.
Janet Yellen has a great chance now especially after earlier -- -- -- into that our next segment but I want to turn to sound bite from.
That -- pretty yesterday take Allison.
The committee decided today to keep target range for the federal funds rate.
It's Euro to 14%.
To make no change.
In either its asset purchase program or it's for guidance.
Regarding the federal funds rate target.
This was any a step.
And -- it was a step up precautionary step if you will -- was any.
And it it intentionally intention is to is to wait a bit longer.
And to try to get confirming evidence whether to these -- whether or not the economy is in fact conforming to this general outlook that we.
That we have and that's exactly you said the big gains they need to see the data and the confirming evidence that the economy's stronger but you know last.
We might -- had for a really long time yeah that's true I mean he kind of put himself out there now so we don't see that these units or or we start to see that data -- in the next.
It is it is it enough for him to to do anything.
I am concerned about the economy you know everyone always says.
Rather section we know that but it feels like we're in a recession if you look at the latest -- -- -- data from last year.
We -- the top 5%.
Get richer and the bottom 80% of people.
Earning less than what they did before the recession so that's what it means when you say it still feels that we're in a recession.
So Danish just stayed -- in the -- like it's getting better shore it's still far from healthy most buyers a cash buyers most buyers are foreigners.
Are you concerned about becoming.
I am concerned about the economy and five years into this stimulus program and the Fed Chairman who desperately I think wants to start tapering.
Has -- -- sit down in front of the world yesterday and say we can't the data isn't there.
So that's a bad sign that the economy really has responded in the way they have hoped.
Do you think if he did do a small taper yes -- like everybody was expecting.
Achieving the market would not have plummeted.
I think yeah the market might have may be sold off slightly if that because I think.
The entire world was expecting to taper.
Now we -- it -- yeah yeah he did he did and you know we wanted to trust him and give him.
That ability to start tapering we know we have to do it at some point -- to wean us off that that medication if you know.
But he decided not to and which which makes me think.
That the data was even worse than -- maybe.
He's talking to telling us about right now.
What dating he's looking like an indication of how the September jobs report would be -- yeah well perhaps the housing sales for example that were so good today coming out from August -- -- a little bit because people weren't thinking that rates were going to rise plus -- now -- and by right before that taper.
So could be some false stated that we're we're thinking is good but they really believe over the longer term doesn't -- that.
And isn't that for small businesses -- -- is that for -- but it -- for some businesses especially because there's.
Teams weren't certain.
But there is this just concerned that won't go away that's right.
-- is going to come we just don't know when and I think investors are our best to prepare for it.
But you know you start to wonder what's the what's the steel behind the Federal Reserve if they're not willing to take an easy taper and the market started pricing -- -- I know and I'm so glad you said that those looking at some of the numbers.
And the first talk of caper which happened in June and then again in August -- sunny S&P 500 -- that 4% one time 6% second time.
We're -- we know it's -- we already did the pullback yet.
And now I mean realistically we could be talking about -- sixteen pounds and when you look at this state of the economy verses the state of the stock market is huge disconnect yes yes I think investors kind of rolled their eyes a little bit yesterday when they.
They said oh sure you're gonna tapered he didn't so what we know what is it -- it takes to Nancy taper.
I don't know hopeful -- -- that is that is the big question Christian and that is CEO of wheelchairs thank you thanks and and I that was great good perspective there.
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