HOME ON THE RANGE

IZ CORP EXCHANGE
ECONOMIST CORNER
MR IBO RICHARDS ECONOMIST

IZ CORP COMPANIES


ECONOMIST CORNER
      HOME ON THE RANGE
Good day fiction and rumor is similar but a fact is a fact. The US Economy is headed in the right direction as the concerns of the healthy future is about. The question becomes how soon. Remember that health care talks frighten markets. Why? Because it allow the focus of actual health for the humans in the US Economy to shift to health of the reluctant business man and his/her business. From mandates to cutting hours the relation to the broad based market which mind you is soooo exciting extending  the skyline of new highs trine and time again. Resilient many would say.
Hear is the headache The equilibrium of real wages and where that will leave true unemployment numbers. By letting firms increase wages the legislation will force a decrease in real wage as many argued before when the cost of health care which didn't seem to be a factor before the affordable health care act was passed in 2010 is upsetting the "natural" which is affected by institution and policy. The rate of unemployment rattles the market in the form of uncertainty. At a time when technology is absorbing the brunt of most headwinds the US economy faces the economy is experiencing the discipline device  in the form of unemplyment. The charitable argument could go on and on...The wage setting  is what the market can't anticipate on top of interest rate hikes that are now off schedule.
That is just one of the economics situations the US Economy is facing. The good news is that disinflation is interrupted in the finacial markets due to monetary policy. In particular the ECB. Can anyone say Volker Rule? And or is the monetary policy commuted to reducing money growth if needed by letting interest rates increase by higher levels. Keeping in mind remaining on schedule would suffice the broad economy. Growth targets at 2.5% is now a stretch yet keep in mind once again the tax breaks the new administration promised would be a nice stimulus for the markets in general.
Now what? The market is definitely range bound and the levels that bonds yields are at now concern many that are finally tempted to enter the market. Hear is funny many argue that the cycle of the market has reached the top and is due for a significant turndown. Elementary. First one must recognize the Federal Funds rate and interpret between disinflation target and recession. Keeping rates high could decrease federal fund rates and the economy could glide longer perhaps many economist suggest through to the curve. Look at the sacrafice ratio but first put on your  poker face. Thank you and have a great day.
QBKR NEWS REPORT with MR IBO RICHARDS ECONOMIST
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