The importance of the rate rise.

The magic day is almost here when the FED has to put up or shut up. It might be of interest to review what is at stake. The junk bond market is already reeling:

Note that the high yield ETF has lost value much faster than the S&P 500. Also, note the double bottom in the S&P then the recovery and just now the double top. The Stock Market is shaky. That is not all that is shaky. The Baltic Dry Index is hitting low numbers indicating that international trade is way down. Manufacturing is limping.

Increasing bank rates may reduce housing - always a big component of the US economy.

Lest we forget every 25 point rise in interest rate will increase current Federal deficit by $35T. That is, if the FED rate goes from 0-.25 to .25-.50, the deficit will increase by $35B. Some people believe that because of the weak economy and the possible increase in deficit, the FED might postpone again.

What does Larry say? According to him, his cycles all of a sudden focus on Dec 15 as a big turning point. Tomorrow might be interesting.