Some wise words about the economy from my friend, the MarketDoctor (emphasis mine).
What happened to the Gold-Locks economy? Just a few weeks ago it was in full force as the major Stock Indexes posted exuberant gains. Could it be that this Goldi-Locks scenario actually resulted in requiring the US Fed and EURO Zone counterpart to inject billions of currency into the financial system to maintain liquidity in the banking sector? And if the US economy was naturally so strong, why is it that the Federal Reserve needed to cut the Discount Rate some 50 basis points to avert potential calamity in the marketplace? Is that what the Goldi-Locks scenario is all about? Is it that the Goldi-Locks scenario requires an asset bubble in Stocks or Real Estate to prosper? How strong could the Gold-Locks scenario be if only a 5.25% Fed Funds rate sent it to crash into flames.
I think he hit the nail on the head, if our economy is so strong why is a 5.25% FF rate causing all this calamity?
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