It was Bell X1 who muttered those famous words, “I’ll see your heart and raise youâ€. I know former Federal Reserve Chairman Bernanke during the nadir of the financial crisis experienced a gut check and showed a lot of heart for investors, workers and his country when he took such extreme measures which up until then had only been theorized and written about in text books. I have to admit he went further than I’d ever expected. I recall many a conversation when discussing the tools and policy maneuvers available to the Federal Reserve stating, “ what are they going to do cut rates to zero?â€Â I was also know to utter, “well rates can’t below zero.†I have to admit unashamedly I was wrong on both counts.
The Fed did indeed cut the Federal Funds rate to zero and the European Central Bank instituted a negative interest rate policy. It wasn’t that I didn’t think they had the ability to do so, I simply laid my confidence on the ability of our elected officials coupled with a proactive Fed policy would be enough to stave off a near collapse of our financial system and economy. The Fed Chair obviously was forced to shoulder the weight of turning things around due in no small part to the increasing dysfunction in DC that prevails today from our elected brain trust. So, while the Fed has done most if not all of the heavy lifting up until now the game is not over but our hand is looking pretty good from where I sit. Here at GSA we see a continuing and broadening out theme in the economy, strength.Â
Where we are.
Institute of Supply Management Manufacturing-ISM Manufacturing.  The ISM released just Tuesday surged to a three year high of 59.0% the fifteenth month of expansion and highest since March 2011. Digging into the report shows more reasons for optimism as the New Orders component ripped higher to 66.7% a ten year high. Also, importantly the Employment Index came in at 58.1% the fourteenth month of expansion (a reading above 50 would reflect  growth)
