[Note: The FED raised it’s benchmark Fed-Funds Interest Rate yesterday, from 0% to 0.25%, although the Bond Market (at this moment) is showing 90 Day US Treasury Bills at 0.19%. – Bob]
By John Rubino – Re-Blogged From http://www.Silver-Phoenix500.com
Ideally, a central bank would like the party to be rocking when it takes away the punch bowl. This party, however, is not cooperating. For every sign of exuberance (high-end real estate bubbles, equity and bond bull markets, job growth) there are five or six things going wrong, some of them in a big way. This morning’s news illustrates the point:
Plunging energy prices are a tax cut for consumers but a calamity for the leveraged speculating community. And since finance now wags the economic dog, the latter effect is potentially a lot more serious. Look for a wave of bankruptcies and defaults across the energy world in 2016.