It's more a factor of the market worrying that Trump could win and make enemies with all our trading partners causing shortages, inflation, and global instability. Sadly the alternative is the embodiment of corruption, Hillary Clinton leaving with America with no good choice in the election, especially since Trump refuses to uphold traditional fiscal conservative values. This makes the Republican candidate look bad as well.

Some people have pointed out really terrible market events are political in nature. I can see that one of those events may be forming and there may be no way to avoid it from happening given that both parties may cause a very bad political result in the near future.

Even a 1% rate by the Fed will not amount to much of anything. The real issue is will inflation rise enough to force further rate increases. Right now it looks like the economy is not that healthy which strangely enough remains good for TBTF banks. If the economy does magically shake the Japan style zombie effect of low rates and zirp policy then I assure you, a manufactured downturn will be on the way. Thus bet on a continued zombie economy. Eventually, valuations on companies will get higher not on price increases but on continued decreases in performance much like Japan's stock market has done.

Look east to see America's future with this type of Federal Reserve. And Japan is the good scenario. We may be in for something worse, but I agree with the author. It will take a catalyst to start the rock rolling downhill. What rock? Who knows. But there are a lot of rocks.

It's sad to see graph 1 where GDP growth is declining all last year as the Fed says constantly the economy is expanding and growth is accelerating. Damnable lies.

The Federal Reserve is copying Japan right into the zirp Q/E hole. The issue is that it leads nowhere but where its hot and lava-like. Japan is seeing that negative rates is close to the mantle. It makes no one better. Rather it will make things worse. Climbing out of hell is not fun.

Sadly, the Federal Reserve also wants to go swimming in lava and wants to try taking money from you for holding money (negative rates). In this system, you have little to no power and they have all the power. This is not capitalism, it's much closer if not completely a socialistic managed economy. You might as well put 666 on your head and declare yourself a slave now.

The author is blaming the wrong agency for the buyback binge. Companies are just following the guidance of the central bank that is telling everyone to load up on debt while perpetuating an environment that favors stability of asset prices over growth. They have changed their tune somewhat now saying inflation and higher rates are good. Even so, they still seem unable to get Fed rates to even 1% after realizing from Washington they won't be allowed to dole out more liquidity to themselves and banker friends through QE or negative rates.

The Federal Reserve not getting what they want may be the single biggest political event to cause a new crash. Why, because then they can cry and demand everything they want and probably will get it. The Federal Reserve needs reform. Their interest is clearly against the American people despite what they claim.

Sadly the Federal Reserve is to blame creating an environment that encourages excessive debt and discourages preservation of capital. This compounded by low growth has created an environment where performance is measured by stock buybacks and now dividends financed by debt to create the image of health without growth and with low to no infrastructure or growth investment.

Indeed, it's not just corporations but governments and people who will feel the pain when rates and inflation rise again. That's why its strange for the Federal Reserve to say they want inflation. Inflation is bad even at 2% if growth is under 2%. We will see how long and how deep the Federal Reserve is willing and able to go to dig America into a mess we can't easily get out of. Given they asked to enforce negative rates in Washington there seems no limit to their willingness to "liberate" us from capitalism. Bernie Sanders is nothing new. We have had corrupt socialism in our economy for years already through the Federal Reserve who wishes not to grow the economy but to keep enriching the banks that make it up through zirp rates and QE. They seem rather angry that they can't issue more QE. Of course, if we go into a recession maybe they can. Hmmmmm....

LOL this resolves Greece's issues in the short run at the cost of more borrowing making its long run issue of too much debt even worse. Sadly, it also doesn't do much to resolve the unsustainability of its government's overspending which lops on more debt daily.

Sadly banks have figured a way around. They make risky best that usually win, crate companies to insure them when they lose, underfund them because its actually them, then when it loses their losses are limited, the backing company's losses are limited because they are underfunded, and the taxpayer gets the bill because they claim the financial system will collapse if they don't pay out. This is the whole premise around too big to fail and why every TBTF bank wants to get bigger and remain TBTF.

It's a scam to screw Americans.

Derivatives vary from mild to toxic. Sadly we don't hear about the toxic ones until too late. Likewise, many of those insuring or covering derivatives are not solvent if derivatives they insure go under. This is not a mistake, they are like this for the exact reason that they exist. To make money insuring and limit loss by going under when the insurance fails. Sadly, many say most of these have been created by banks to limit their liability and hide their risk.

Derivatives would be fine if there was no counter party risk and all those selling and insuring the sellers were solvent. However, if they were, what would be the fun of that. It would suck up massive amounts of capital. In fact, more capital that the whole world. Which underlies the very illogic in many derivatives games going on right now. It is a game of liars poker which TBTF banks have done all they can to put the cost onto taxpayers as the dumbest people in the room because their caretakers, politicians, could care less what happens to them.

Interesting. Too bad more people haven't read this. Although the Federal Reserve preaches debt and thinks the solution is more debt, in reality it is not the solution, not has it been. And indeed too much debt leads to problems not solutions. The cycle of leverage and deleverage is a natural one and without deleverage we run into greater and greater dangers.

The simple fact is that many companies and individuals are so leveraged that a 3-5% prime rate would make it obvious that their debt is exceeding their ability to be solvent. Likewise the Federal government would be wallowing in interest payments and would need to curb spending. The Federal Reserve is playing a very dangerous game and is encouraged by government which wants to party on too. If inflation and interest rates rise they will be forced to pay the piper even if the economy doesn't rebound. And if we fall into a recession at this low rate there is little that can be done to help us out given the economy continues to become overleveraged from Federal Reserve games.