Wheeeee – what a ride!
Down 800, up 700, what a fun day in the market. Now we're only down 750 from Monday's open so we can make that up by 11, right? I certainly hope you have your hedges as we literally could go 750 points either way off the Non-Farm Payroll Report at 8:30 this morning – especially if it shows more than 250,000 jobs created as that would mean the Fed really needs to raise rates before wages start eating into Corporate Profits and spur inflation. Even though wage inflation is "the good kind" that makes the economy stronger – the Fed doesn't give a crap about that – the Fed is a banking cartel, not some Government entity there to help you and they are only interested in protecting Corporate Profits, specifically Banking profits, they could care less whether or not you have a job – what they care about is that, if you do have a job, you are paid as little as possible so you have to take out lots of loans and pay interest to the Banksters. That is literally their primary function.
Why does the Fed not want inflation? Because you take a fixed loan on your home of, for example, $250,000 and put down a $50,000 deposit and, at 4.5%, you pay $1,266.71/month (not including taxes, insurance, etc) for 360 months which works out to $458,933 (plus your $50,000 deposit) paid out on your $300,000 home. The problem the Banksters have, however, is that the last $1,266.71 you pay them isn't worth as much as the first $1,266.71 you paid them due to inflation so they want inflation to be as low as possible to maximize your effective payments. THAT is what the Fed is concerned about.
Keeping inflation down means keeping wages down, which has the side-benefit of keeping you perpetually in debt and, hopefully, they can one day sock you with a 8 or 10% mortgage and then they really start raking in the profits! At 8%, that same $300,000 house with a $250,000 mortgage goes up to $1,834.41/month and that's $665,596.45 paid over 30 years on that $250,000 you borrowed. Sucker!!!