A natural problem or two is arising. Interest rates have been zeroed out for too long. As the three Fed stooges finally admitted last week, zero interest rates are only justified by crisis. Continued zero interest can mean only one of two things, we are still in a crisis behind the scenes or rising interest rates cannot be tolerated by markets with no margin left. Both of these are the reality! Before going any further, one thing needs to be made clear. Central banks do not, better said CANNOT set interest rates. Yes, they can push, pull, “suggest” and even buy sectors of the credit market to affect interest rates…
…BUT ONLY in the short run. My point is this, “the short run” is ending!