[video] Quick Take: Stocks at Standstill; See Who's to Blame
NEW YORK (TheStreet) -- Equity markets have been awfully quiet heading into Washington's debt ceiling debate. Perhaps a little too quiet, according to Albert Fried and Company's Ben Willis.
TheStreet's Debra Borchardt was quick to point out that the volumes in equity markets were far lower than usual and given all the events that are just over the horizon, it seems odd.
Willis said that the Federal Reserve popped the wrong "bubble" last week when it made its non-tapering decision. He was referring to the fixed-income bubble that the market had expected the Fed to deflate by reducing its asset purchases. Instead, it burst the bubble on the belief that the world economy was nicely recovering.
Because of the surprise move, many investors are left scrambling -- trying to figure out what everything is really worth, while the Fed continues to buy assets at the same rate of $85 billion per month.Willis went on to say that the Fed isn't supposed to be political, yet it mentioned it was conscientious about its effect on emerging markets and also worried about Washington's ability to resolve the debt ceiling debate. He concluded that markets have remained at a standstill, trying to figure out which direction is next. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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