When the Federal Reserve didn’t raise interest rates on Thursday, investors should have thought of two people. First, they should have felt terrible for the maintenance man who—on one-by-one—has to yank down all of the green celebratory balloons from the CNBC studio rafters that were supposed to symbolically drop when the central bank would raise interest rates.
Crude oil prices fell below $40 a barrel signaling that not all is well with the global economy. In a global equity market rout, fear trading has taken hold as traders run to the safe haven of bonds and run from just about everything else.
The price war in crude oil is over if you want it to be! At least that is the talk in the energy complex where Saudi Arabia declared a price war against the shale producers at the November OPEC meeting.
When Dr. Alan Greenspan became chairman of the Federal Reserve, he moved from the world of rhetorical economics to the world of action. His most recent memoir attempts to make sense of how the financial crisis of 2008 came to be and how we can better predict future crises, along with the role of gold in a global monetary system.