Moonglow
Diamond Member
Just like it did during Oblama..Yet we recovered from quantitative easing and sequestration..Currently the Dollar has been falling this week. It's down to 93.31 from highs of 94.xx last week.
Now this is due to the selling of bonds to provide extremely low interest rates for mortgage loans and stock purchases. (Market stimulus)
The problem is that the current rates for loans are below the inflation rate. The FED has caused a catastrophic bubble to form and don't want to pop it... because the second they stop the stimulus interest rates will no longer be artificially low and the high flying market will accurately tank tremendously. (All the leveraged stock purchases/positions will have to be dumped by investors)
Disappointing earnings are coming...so is a lean Christmas sales season. (Supply chain interruptions)
Growth stocks are what is driving this market. Ford's stellar profits were expected despite the bumbling CEO statements because of the backlog of demand for new vehicles. (They have been sold but just waiting to be delivered)
But it is an extremely small sector of the market and economy. Manufacturing is the backbone of our technology driven economy. But American manufacturing is just a snippet of the whole global manufacturing economy. And that economy is showing signs of real problems...orders have been standing around for so long they have been abandoned at this point. It started with microchips and has expanded to a LOT of materials like nylon (seats in automobiles) and kevlar (used for making tires).
The lack of sufficient energy(expensive energy) has also exacerbated the low supply of low priced commodities like sugar (used for ethanol) and cotton and coffee.
And now with a new tax structure looming corporations are waiting to see what evolves out of Washington DC so they can strategize against paying taxes...to find loopholes and possibly moving all operations and charter out of the country.