Bill Fleckenstein Warns That Today’s Fed Rate Hike Doesn’t Mean A Damn Thing

Thursday, December 17, 2015
By Paul Martin

KingWorldNrews.com
December 16, 2015

On the heels of the Fed raising rates 0.25 percent, Bill Fleckenstein told King World News that today’s Fed rate hike doesn’t mean a damn thing.

Eric King: “Bill, the Fed has rates rates today. What could go wrong as a result of this?”

Bill Fleckenstein: “What can go wrong is a long list of things. First, the economy has been weakening at the margin in the United States and the world economy is also weak. We have a budding problem in the junk bond market and therefore a problem in junk bond funds. We’ve already seen what happened to a couple of these funds…

Bill Fleckenstein continues: “So there may be some illiquidity issues that are a consequence of the prior easings that took place, which, perversely, are manifesting themselves now as the Fed does its baby, little hike.

So there is the fact that the economy is weak, earnings numbers haven’t been great, most stocks aren’t doing that well, and credit market issues. The reality is that nothing has been fixed and we could see some problems in the money funds, depending on the Fed’s ability to actually make this 0.25 basis point hike happen.”

The Rest…HERE

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