In April of last year I wrote the following headline, “Are 401K Holders About To Feel A Savers Pain?” And in that article I expressed the following. To wit:
Welcome to the “markets” (or should I say casino) of today. Where 401K holders, and corporate buy-backs supported via the Fed’s balance sheet accrual, and zero interest rate financing meet the front running, algorithmic, headline reading HFT parasites which enabled the BTFD phenom to appear time, after time, after time, after time. Which, by its very nature and existence has allowed “investing” to be the equivalent of nothing more than following the strategy of a chimp hurling darts at ETF symbols backed by a central banks “bulls-eye.”
Ah, but what a difference an election does make, no? For that was then – and this is now. And “now” seems to be that the Federal Reserve is hell-bent as to raise interest rates regardless of what the “markets” desire.
Can you say, “Oh-oh?”
For years the cries of savers, pension plans, insurance companies and more have fallen on deaf ears. Actuary tables that prove these bedrocks of society can not sustain or endure under a Fed. policy such as what has been thrust upon them was relegated to the, “Who cares the “markets” up – deal with it!” status.
Now – That all seems to have changed.
This commentary made the media rounds to the point where I was watching a national news broadcast and heard the anchor state, “Reuters™ is reporting…” and then heard the title. Like I always say, I am consistently amazed just where my articles may show up.
However, with that said, came the usual backlash or disgruntled responses of, “doesn’t know what he’s talking about blah, blah, blah…” across most of that same mainstream business financial media.
Now you no longer have to guess to whether I may or may not have been correct – you now have it from the horse’s-mouth via one Mr. William Dudley now former president of the N.Y. Federal Reserve speaking today on Bloomberg TV™. To wit:
“The Fed is not there to take away the market’s pain,” adding that The Fed “doesn’t care about market prices for themselves.”
And with that I’ll just leave you with the last line from my aforementioned article. Again, to wit:
Dear 401K holders – welcome to a savers world. Oh yeah, and buckle up. For things might get a little “bumpy” as that other saying goes.
Not to add any insult to injury, but the so-called “markets” have almost wiped out the entire rise since then, yes, April of 2017!
The only thing that makes the above worse is there’s still a few more trading days left, for it’s quite conceivable it all gets wiped clean before year end. After-all…
You just heard how the Fed. views all of this via one of the lead architects of what is currently transpiring.
© 2018 Mark St.Cyr