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Uh-Oh. The Fed Has Passed The Ball To Congress

  • Written by Syndicated Publisher No Comments Comments
    September 26, 2013

    After a few clumsy dribbles and a fumble, the Fed has passed the economic ball to Congress.

    And it has markets nervous. Congress’s ball-handling in the past has been so clumsy and non-productive that the team’s approval rating is hovering around a dismal 20%.

    And teamwork is still not part of its game plan.

    So who can blame the Fed for being too concerned about how Congress will handle the debt- ceiling crisis to execute its own plan last week to begin tapering QE stimulus.

    After all, the last time Congress booted the debt ceiling ball around, threatening, as it is now, to let the government close down if the other side didn’t cave, the S&P 500 tumbled 20%, and the Fed had to rush in and take the ball back, with a big new round of QE.

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    And it doesn’t help matters that the market is as over-extended above its long-term 200-day m.a. as it was in 2011.

    So markets are understandably nervous.

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    To read my weekend newspaper column click here: Has Warren Buffett Nailed Another Market Top- 

    Subscribers to Street Smart Report: In addition to the charts and recommendations in your secure area of this blog, the in-depth Mid-Week Markets Update will be in your secure area of Street Smart Report.com tomorrow.

    Images: Flickr (licence attribution)

    About The Author – Sy Harding, Street Smart Report

    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

    It provides two model portfolios as guides. One is based on ourSeasonal Timing Strategy, one on our Market-Timing Strategy.

    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

    There is the Street Smart School of online technical analysis ‘seminars’,commentaries to keep you ‘street smart’ about Wall Street, and much more. 

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