15 September 2015

SP 500 and NDX Futures Daily Charts - Le Cochon Danseur

The Empire State Manufacturing number this morning was a shockingly low miss on estimates.  No surprise to anyone who is looking at the real economy without the rose coloured glasses of bias.

There are plenty of poorly paying jobs without sufficient benefits that leave most Americans in the category of 'working poor.'   The vast majority of all growth is going right to the very top, and by design.

The Fed would like very much to raise interest rates by 25 basis points this week.  It is almost like popping the question to the object of your affections for a first date at this point, they have put it off for so long.

They are screwing up the courage to do it, but the market volatility has them spooked, much like the reaction one might have feared in disclosing their tender feelings, not knowing the reaction of others.

The problem is that the financial markets are just a dancing pig at this point, without a firm anchoring to just about anything, thanks to a long series of monetary and fiscal policy errors that favor the wealthy and reckless speculation, both from access to money and tax treatments.

And there has been no reform.

So like that oncoming homecoming dance, if the Fed fails to pop the question this month, one wonders what will give them the fortitude to ask the question at the Sadie Hawkins Day dance, or even the Winter Formal?

Doing anything after the Prom will be tough next year, because it is a Presidential election and the Fed has learned not to get near the third rail of political meddling.

So they linger under the bleachers, revolving in and out of the dance, partying with the juvenile delinquents from Wall Street, doing nothing real and talking smack.

And the band plays on.

Have a pleasant evening.