Asset inflation can result in deflation on main street.

Remember those companies that took over lots of other companies as an investment tactic prior to the last crash? Most of them are not around.

Nouriel Roubini may have a rodent proof safe which is about as safe as you can get. www.talkmarkets.com/.../summers-and-roubini-talk-negative-interest-rates-sound-logic-but-uncharted-waters But, seriously, bonds will help people sleep easier at night, IMO.

I think the Fed wants to "prove" that the banks are strong, by raising interest rates. But they are not strong and the Fed could be wrong. Policy is wedded to the health of the banks. There is nothing else, but chatter.

Just FYI, the new car smell is formaldehyde, and many people are allergic to it. It is pretty toxic stuff.

As far as risk on is concerned, if the central bank cannot raise interest rates, then banks are broke. They are broke because they will have to pay interest to depositors and can't afford to do it. That is what happens in a deflationary environment.

So, rates could fluctuate in a dumping worldwide of treasuries. But isn't that what the Fed wants? Don't they want to sell bonds themselves at a lower price? They then promise to buy them back at a higher price? seems like that unloading of bonds where there is a shortage of bonds for derivatives is a smart play. Their only concern is if the average Joe likes the higher interest rate and buys the bonds away from the needed use, as collateral for derivatives.

But the Fed fears that if it does not raise, we face negative rates and an ever downward slope. It has to unload bonds and is desperate to do so. It will lie about the economy to unload those bonds.

And the banks are sick. The consumer is sick and the banks are sick. Must be the hedge funds making bank these days.

Not sure how much the masses have to do with market direction. The masses buy and hold. The traders determine direction.