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RE: Incredible Volatility in the world of Finances after yesterdays Speech by Janet Yellen! Check this out!
It's ridiculous to think that a mere 0.25% rate increase (first in a year and only the second in ten years) should be such a big deal. It's not the Fed's move yesterday, but years of interest rate repression and extraordinary monetary expansion have destabilized the global financial system with excessive leverage. If we're lucky, the bond market bubble will explode with unpredictable & unprecedented results for other financial markets. If we're unlucky, central bank policies have already destroyed our currency and we're just waiting to find out what that means.
I agree, but there is so much money lent out compared to before, just look at all the house-bubbles literally worldwide - it will hit hard once they get up to .75% and 1%. Specially if people cannot find jobs in the world due to the destabilization in Europe, North-Africa and the Middle East.