"The percent of young adults, aged 18 to 34, who are living with their parents has increased from an average of 27 percent between 1990 and 2006 to 31 percent in 2013 (a total of approximately 22 million)." Certainly this is true and bad for the economy but is the only solution to a fed policy that exacerbates excessive property prices to keep the economy from experiencing a normal cyclical downturn.

Inflated property prices didn't just sink the market in the last downturn, but led to smaller houses, lower spendable money by households, and inflated debt. Re- inflating the bubble isn't a solution, it is a regression back to the central cause of the last downturn. The results are liable to be the same or worse.

It was rather pathetic to watch the run up rally yesterday get wiped the next day. What people fail to realize is that the Federal Reserve is raising desperately in attempts to get rates up enough so they can implement Keynesian rate drops to help the economy when it goes down. The problem is raising rates at the end of the cycle tends to just increase the likelihood of the cycle to end. They should have raised not months ago buy years ago.

Good focus on traditional economic indicators. Unfortunately not enough people look at these given the Federal Reserve has taught people that they have had the power to make them seem irrelevant through more easing. The issue is they have no more easing to give and you'd be a fool to believe their current prognostications.

The big issue is junk bonds and associated derivatives which have been under pressure even before the rate increase went into effect.

"Yes, please meet the “worst economic forecasters” ever. And while the mainstream media quickly laps up the optimistic outlook of the Fed, you might want to consider their own record of forecasts when making long-term investment bets."

True, however, those betting with the Fed usually ride the market up as they purposefully overextend every cycle in order to please political powers at the cost of worse downturns later. Thus, understandably, they have lots of cheerleaders encouraging them to always do the wrong thin on monetary loosening.

"Yes, please meet the “worst economic forecasters” ever. And while the mainstream media quickly laps up the optimistic outlook of the Fed, you might want to consider their own record of forecasts when making long-term investment bets."

True, however, those betting with the Fed usually ride the market up as they purposefully overextend every cycle in order to please political powers at the cost of worse downturns later. Thus, understandably, they have lots of cheerleaders encouraging them to always do the wrong thin on monetary loosening.

Good points. People must realize OPECs goal isn't to make more money, it's to insure its market share because further loss in it will result in it being increasingly irrelevant. OPEC's aim isn't the US but every non OPEC producer taking market share and its done for a rational business reason much the same reason DRAM manufacturers increase production and take losses when there is a glut. Like OPEC, the ones that did this are the winners and many of the ones that didn't aren't in the DRAM game anymore.

I would not be shocked if the Federal Reserve still raises rates, because as stated before, they are getting desperate to raise rates before the downturn really hits. The crash of junk bonds is happening far faster than everyone expected mostly because the market is so huge and big banks are in it. There is no way all wall street can separate themselves from being affected. It is more widespread and endemic than even the last downturn primarily because the Federal Reserve has been encouraging participants to get involved in it. TBTF banks are up to their eyeballs in junk as well as derivatives surrounding them. If the market turns down we will begin to see how badly they are involved because they will call for taxpayers and the Federal Reserve to bail them out yet again.

With the dollar rallying the way it is, I expect almost every currency to devalue, especially as rates rise for junk debt which the world is flooded under along with the derivatives backed by who knows that support them. Regardless of the Federal Reserve's rate rise, rates are going up on default risk regardless and there is nothing much central bankers can do regarding it because it has to do with intrinsic devaluation, not central bank rates.

People were on the wrong side of the last downturn which originated from junk and spread to the junk no one wants to hold Fannie Mae and Freddie Mac real estate deals which many are, by their nature, junk. That's why banks refuse to hold ten and only make the loans on presumption the government will buy them, especially FHA loans at 3.5% down which are essentially government sanctioned NINJA loans.

Who will finance income insurance? The government will provide it. The reason businesses increasingly don't want workers and want contractors is because of the mess of legal requirements and costs attached to workers because of the government. There is nothing wrong with contractors. What is wrong is saddling businesses with so much garbage when they hire someone that they choose not to hire. That is one reason the economic growth in the US has dropped so low.