VIDEO: Volatile
Monday 25 August 2015 / Hour 1, Block A:Steve Moore, Heritage, in re: The New York Exchange has been down for six days in a row; forever overseas. The weakening is . . all the major commodities indexes have been going down, anomalously. When the Fed July minutes came out, not ready to raise the rate; see no inflation. That was the first peg into the market correction – "Consolidating at lower levels." QE and other tricks – none of this has worked. SM: I don't thing the Fed will solve – it's fiscal, regulatory, Washington, What China is doing: lowering Interest rates, debasing currency a bit; what China needs is a dose of free-market economics. LK:We've corrected 10%; no recession, nor a boom, nor inflation, Interest rates will stay low and gasoline prices descending, Pay great attn to third-quarter profits when the come in. Beijing is not privatizing, as promised, but trying to bail out sate-owned enterprises. Lower reserve requirements. John Routledge, teaches in Beijing, says China is moving in the wrong direction. SM: Note that US co's are pretty productive, perhaps a better investment. JB: Does the Fed have an exit strategy? LK: An incomplete