Name:   MartiniMan - Subject:   Stock market signaling a recession? Date:   9/3/2015 8:17:13 AM

Good question and the short answer is I don't know for sure.  What I have read is that its not the amont of the hike that matters.  The markets respond today to what they think is going to happen down the road.  A rate hike sends the message to the market that the Fed is going to try to increase rates over time which over time will provide another, presumably safer alternative to equities.  Is the rate increase already baked in?  Maybe.  But there are still a lot of investors that will respond emotionally to the volatility and the possibility of a bear market, particularly the boomers that are getting closer to retirement or are retired.

On the debt side, I totally agree with you and am convinced it is a huge threat and has to be brought under control.  I just don't know if we have an electorate that understands this and is willing to accept the sacrifices, especially when they are told and stupidly believe that all we need to do is sock it to the 1 percenters and all will be well.  Economic illiteracy at its finest as the top 5% already pay the majority of taxes and unless you are going to tax wealth instead of income (which ain't gonna happen) the middle class is going to get hammered.  At this point my best guess is we will end up like Canada where they pay more each year in taxes than they spend on food, shelter, etc.  But hey, maybe they will give us "free" health care like they do in Canada where it takes six months to a year to get a hip replacement or bypass surgery.  That is unless you have the cash and can come to the U.S. ang get it in two days.....for now anyway.  Obamacare will probably take care of that eventually.