As We Spend More, And As Companies

The Theory Is That If You Take Interest Rates Negative, People Are Going To Say, "that's A Silly Game! I'm Not Going To Lend My Money To Governments Who Want Me To Pay Them. I Am Going To Go Into The Stock Market Where I Can Get Positive Returns!"

The One Instrument That Has Relative Political Autonomy Is Monetary Policy. Central Banks Do Not Need To Go To Congress To Get Approval For An Interest Rate Hike.

Once You Start Moving [market] Lower, Then You Trigger Of All Sorts Of Things. You Trigger People Who Have To Sell Because They're Over-levered. So They Sell Their Winners And Their Losers. They're Just Trying To Raise Cash. So, What You Then Get Is Spreading Malaise Throughout The Global Markets.

How Long Can Interest Rates Stay Negative? Think About This. Not Only Are You Lending Your Money To Governments, But You're Paying Them Interest For The Privilege Of Doing So.

Investors Should Be Cautiously Positioned As The Global Economy And Markets Face Major Uncertainties. The Downgrade Will Be A Further Headwind To Growth And Job Creation In The U.s.