A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
The stock market shows
addiction to low interest
Yesterday, the jobs report
showed continued growth and a drop in the unemployment rate, yet the Stock
Market took an almost 300 point drop. Confusing to some, but it is really not
so confusing if you think about the addiction that large businesses have to low
interest rates.
I watch and listen to so
called experts in the market and all these people continue to deny that the low
interest rates have pushed the Stock Market to record highs, but if that is
true why every time the market thinks that the Fed will raise interest rates in
the near future, does the market take a hit? This is the danger of continuing to
artificially keeping rates low, the market is addicted to it, and as much as
the Fed says it will bring rates up slowly to have a soft landing, will that t
really be the case?
Like I have talked about
before, the Fed has pushed the stock market up while so many of the rest of us
have paid the price with terrible saving interest, and low paying jobs. The low
interest rates were supposed to spur hiring, but even though the jobs report
has showed steady growth, we all know that wages are still not going up. I don’t care if the rich get richer, that is
just the nature of the game, but I don’t think it should cost the rest of us
for them to do well.
We all complain that too
many people are getting money from the Government without working for it, but
the corporate welfare that is going on these days is ridiculous, Ask your self a
question, how well would you be able to do, If you were getting free money
like so many of these large businesses. I know in my Business of Property
Management in Anaheim Ca. If I could get my hands on free money I could greatly
grow my business without struggling to come up with advertising dollars.
I understand that the Fed
wanted to spur investment into these large businesses, with the intent that it
would create good paying jobs. But that has not happened and now these
businesses don’t want the low interest rates to go away. When they do, will
these businesses that have used the free money to prop up their bottom line go
through withdraws, are they any different than the junky on the street looking
for the next fix of their drug of choice. The low interest rates have been the
drug of choice for the Stock Market and I think it is time to get them off the
drug and allow the free market to be the incentive for growth not the Fed and artificially low
interest rates.
A.D. Cantelmo Property Management Specializes in Property
Management in Orange County Ca.