“If bond yields keep rising which I think they will, then not even stocks are safe from a welcome decline in energy prices. In this case lower energy prices could prove to be a Trojan horse unleashing a problematic rise in market rates.”
“What is helping the dollar is the moral persuasion of the central banks. There's been contact between the European Central Bank and national central banks that make up the ECB urging calm, urging a block on any kind of speculative trading. The Federal Reserve has also weighted in and asked that dollar trading be limited. I think that will support the currency.”
“Call it counter-deflationary action. Call it an anti-double-dip dose. Call it a pro-asset-price-prop. Call it a consumer caress. One thing for sure is the Fed is running out of reasons for simply holding policy steady at already historically low rates.”
